Ford CEO Jim Farley has proven himself to be a passionate car guy, but every now and again he pops up to remind everyone he’s running a multi-billion dollar company with one of the most recognisable brand names in the world.
Earlier this week, Farley stood with US President Donald Trump as fuel economy targets were slashed, effectively allowing Ford – and other brands – to battle less red tape and sell vehicles for greater profits, while at the same time providing better up-front affordability for buyers.
Now, Farley has turned his attention to Europe, amid reports that the continent’s lawmakers are set to wind back its complete ban on new petrol and diesel internal combustion engine (ICE) vehicles by 2035.
Last week, European Union’s Transport Commissioner, Apostolos Tzitzikostas, told business publication Handelsblatt the ICE ban will likely be tweaked to allow “zero-emission and low-emission fuels, advanced biofuels”, while German Chancellor Friedrich Merz previously called for plug-in hybrids (PHEVs, extended-range EVs (EREVs) and “highly efficient” ICE cars to be exempt.
In a guest column for the Financial Times, Farley called on Europe to change its “unrealistic” expectations for ICEs to be banned from showrooms by 2035, and the rapid changes required to meet that goal, especially with EV sales falling short of initial projections.
“European policymakers say they want a sustainable auto industry. But setting unrealistic regulations only to adjust them at the end of each year when consumers do not show up is a recipe for turmoil,” Farley said.
“This approach disrupts a complex cycle of product design, engineering and supply chains that require long lead times and billions in investment. We urgently need a regulatory framework for Europe that provides a realistic and reliable 10-year planning horizon.
“On one side, we face the world’s most aggressive carbon mandates, regulations that demand a pace of electrification that is decoupled from the reality of consumer demand.
“On the other, we face a flood of state-subsidised EV imports from China, structurally designed to undercut European labour and manufacturing.”
Those Chinese EVs Farley speaks of are typically cheaper in Europe than locally made products, though brand-specific tariffs were brought in earlier this year to try and restore competition in the marketplace.
Farley noted that despite the influx of Chinese EVs, the market share of these vehicles is only at approximately 16 per cent, not the 25 per cent target initially proposed by lawmakers.
The executive also added more European factories are being shut down, idled or having shifts reduced, something Ford itself has faced, with the Cologne factory – home to the Explorer and Capri electric SUVs – having a quarter of its staff cut due to low demand.
Likewise, reports from Bloomberg suggested Volkswagen’s Emden plant would be cutting back staffing hours, impacting the ID.4 SUV and ID.7 sedan/wagon.
“To be clear, the industry is not asking for a bailout. We are not asking for protectionism to shield inefficiency,” Farley added in his Financial Times piece.
“At Ford, we will continue to do the hard work of restructuring. We have closed legacy facilities, reduced our workforce and slimmed down costs to become more agile. We have invested billions in transforming our manufacturing operations in Europe and offer our customers greater choice in making the shift to an electric or hybrid vehicle.
“But if Europe wants to avoid becoming a museum of 20th-century manufacturing, we need an urgent reset and a long-term plan.
“The approach to regulation – mandate it and they will buy it – has failed. We must align carbon targets with actual market adoption and provide automakers with a realistic and reliable 10-year horizon.
“This includes giving consumers the option to drive hybrid vehicles for longer, bridging the gap rather than forcing a leap to EVs they aren’t ready to take.”
As reported last week, Automotive News claimed the Ford Bronco nameplate would be used for a new European-market SUV from 2027, offering a plug-in hybrid (PHEV) powertrain to meet market demands and emissions regulations.
Discussion about this post