Ford (NYSE:F) saying it can go head to head with Tesla (NASDAQ:TSLA)
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Ford (NYSE:F) has invested more in its plug-in hybrids and doesnt have an electric cars, thus giving way to competitors in its line up. However, Mark Fields, the CEO of the famous American auto manufacturer reported to USA Today that the company can go head to head with Tesla (NASDAQ:TSLA) in conpeting with its electric cars hence creating a product that would be in line with Ford’s (NYSE:F) product philosophy as well.
This summer, Alan Mulally, was replaced by Fields who gave the company a top to bottom change which included a cut down of the number of platforms in the company as well as its brands. Mulally wasn’t interested in pure electric vehicles which are the reason why he dedicated a minute marketing budget to the Focus Electric. Ever since then, Ford (NYSE:F) reduced $10,000 on the price of its car. On the other hand, the company made the most out of its plug-in hybrids C-Max Energi and Fusion Energi through excessive promotion.
Field’s told investors in a call this Friday that his company could build a larger and pure electric sedan that could compete with Tesla’s (NASDAQ:TSLA) Model S in performance. However this vehicle can fit right in with Ford’s (NYSE:F) mission which is to focus on high-tech automobiles. Field’s didn’t confirm officially more on whether the company was in the process of making such a car but he did state that Ford (NYSE:F) engineers purchased a Model S and after driving it, they pulled it apart and studied it completely before putting it back together.
Field’s comment now sounds testament to the fact that Tesla (NASDAQ:TSLA) seems like tough competition to the company in this time of despair and they are looking to change their direction entirely. It’s like he was trying to tell the market that we can do it too and succeed, being Ford (NYSE:F). Another auto manufacturer that was caught in the process of studying a Tesla (NASDAQ:TSLA) automobile was GM (NYSE:GM). This goes to show that the intensity of intrigue in automakers regarding competitor’s vehicles is intense.
The dispute between the Ford (NYSE:F) and Tesla (NASDAQ:TSLA) Model E trademark is recent in the automobile industry. However, the point to be noted here is that the cars in Ford’s (NYSE:F) lineup don’t seem like the type of cars to be converted to EVs easily. Around 50,000 of Tesla’s (NASDAQ:TSLA) Model S cars are out on the road. Hence it would be better for the company can build an electric vehicle for its Lincoln brand that would in turn allow the company to charge a premium.
In order to pick up steam in the market, Ford (NYSE:F) should consider this situation by giving the potentially new vehicle a strong platform like the Lincoln. On Friday, Ford (NYSE:F) reported its earnings saying that its pre-tax profit was $1.2 billion for the quarter with a net income amounting to $835 million. This was lower than what it had a year back due to increased cost and declining sales volumes. It is more certain now with Field’s as the company’s new CEO that Ford (NYSE:F) will do more to promote and work on its electric vehicles.