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In Ford’s transition to EVs, cost-cutting takes center stage



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Ford has made cost-cutting a key piece of its EV strategy as the company works to improve profit margins while meeting what CEO Jim Farley has called “incredible demand” of its new electric vehicle models.
During the company’s fourth-quarter and full-year earnings call on Thursday, Farley said Ford has set up a task force dedicated to lowering the bill of materials for its battery-electric vehicles (BEV) “above and beyond just the usual declines in material costs.”
“For example, on the Mustang Mach-E in just the last month, our team found $1,000 of opportunity per vehicle, and that’s deliberate through design simplification, vertical integration and leveraging our scale with supply chain as we ramp up production,” Farley said. “And that team is just getting started.”
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