Ford, GM battle for third place in EV race

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Ford, GM battle for third place in EV race

With Tesla ensconced as the global EV leader and the Volkswagen Group mounting a US $100 billion-plus challenge, GM and Ford are racing for third place, at best.

The Motown matchup is like two football teams slugging it out using very different playbooks as the biggest Detroit carmakers struggle to escape Tesla's shadow.

GM plans to establish a battery cathode materials plant in North America by 2024 in North America, which is a joint venture with South Korea's POSCO. The deal is part of the automaker's long-range plan to build a proprietary, vertically integrated EV machine that it will fully turn on only when costs fall and demand grows in the second half of 2020 s.

GM Executive Vice President Doug Parks said that the goal is EV market leadership.

Ford will elaborate on its EV strategy on Friday. It plans to launch several higher-volume models such as the Mustang Mach-E and the F-150 Lightning, using modified combustion vehicles. Ford will launch a broader portfolio of electric SUVs and trucks in the middle of the decade, designed from the ground up to run on batteries.

Ford CEO Jim Farley is pressing subordinates to add more EV production capacity, on top of announced plans, including expansion of electric F-150 capacity in Dearborn, Michigan.

According to AutoForecast Solutions, both Detroit automakers are expected to lag well behind EV market leaders Tesla and VW through 2028, despite their activity. Production estimates are widely used across the industry.

The Detroit giants must deal with a surprise rival for third place in the global EV race: Stellantis, the European company that was founded last year by the merger of French automaker PSA and Italian-American automaker Fiat Chrysler.

AFS expects that the global output of Tesla will reach nearly 1.5 million by the year 2025, with further growth depending on where and how the company expands its production footprint.

According to AFS data, the VW Group's projections call for 1.45 million EVs in 2025 and 1.9 million in 2028.

Ford's global EV production is expected to hit 695,000 in 2025 and 1.14 million in 2028.

GM's EV numbers look much thinner: 494,000 in 2025 and 624,000 in 2028. The figures do not include production from the joint venture in China SAIC-GM-Wiling, which produces EVs under the Baojun and Wuling brands and in which GM is a minority shareholder.

AFS said Stellantis aims to build 948,000 EVs in 2025 and 1.2 million in 2028, which would put the company in third place, ahead of Ford.

Ford's strategy differs from GM's in other respects. Ford will also source production in Germany, Turkey and Spain, while both companies plan to build EVs in the United States, Canada, Mexico and China. According to AFS data, GM will get electric vehicles from nine plants in 2028, Ford from 12, and will be sold in 2028.

Both companies will be able to electrify their premium US brands. By the year 2025, GM's Cadillac will offer the Lyriq, Symboliq, Celestiq and Escalade EV, as well as a compact SUV. Ford's Lincoln will be able to counter with electric versions of the Corsair, Aviator and Navigator.

Ted Cannis, head of the Ford Pro business unit, said the company has seen so much demand for the new F-150 Lightning from fleet and retail customers, but I'm not sure how we can supply enough vehicles.