US & Global Economic Impact Analysis and Forecasts

Freedonia analysts and economists are sharing their insights on how major events are impacting different parts of the US and global economies.

Ford’s Push Into Electric Vehicles Market: A Potential Gamechanger?

For many, the shift from gasoline-powered to electric-powered motor vehicles cannot happen soon enough, given their concerns about the carbon emissions generated by traditional combustion engines. However, one potential obstacle to this shift is the popularity of pickup trucks in the US. These larger vehicles – which are heavier and therefore require more energy to operate than passenger cars – are a challenge to electric vehicle designers, as batteries must have sufficient “juice” to power them.

Thus, the recent announcement by Ford that it would erect a new production facility devoted to the manufacture of electric-powered pickup trucks – as well as three battery plants (in conjunction with South Korea-based SK Innovation) – represents a tremendous commitment in bringing these vehicles to the market.

The new Tennessee-based plant – expected to begin operation by 2025 – will make electric-powered F-Series pickup trucks. As these trucks are among the most popular selling vehicles in the US, widespread sales of these vehicles would represent a significant reduction in carbon emissions – to say nothing of the shift in truck buyers’ preferences.

Indeed, with early sales reports indicating some promise there (with 150,000 nonbinding sales reservations since May), Ford may feel that truck buyers are more than ready to adopt electric technologies to power their vehicles.

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