Ford executive Jim Farley says the automotive industry will undergo a major transition with the arrival of electric cars and the end of combustion engines.

A automotive industry, like all the others, always goes through several transitions that directly interfere with the posture and relationship of its members. A complete turnaround, from manufacturing processes to assembly lines that were automated and auto parts factories that were installed in the same place or nearby. According to the president of Ford, Jim Farley, the automotive industry is not just going through changes, but through an earthquake, with the end of the era of combustion engines.

Electromobility is the new highlight of the automotive industry

A electrification is the main highlight on the board of initiatives, focusing on the production of battery-powered thrusters and the radical transition of assembly lines, with the withdrawal of combustion engines. In addition, there is also the great emergence of startups that are present in every activity in the sector and the introduction of artificial intelligence in strategic decision-making.

The Ford executive still believes that the new direction of the industry will benefit many Chinese companies, considering that they will have a better position than the United States in the automotive sector.

According to the president, it will be possible to observe a very extensive consolidation in the market. Big changes are coming with the end of combustion engines and it is not possible to see an available market for the company's products in the medium and long term, which these companies are going after after they are big enough to justify the capital they are spending. 

Multinational Ford will use VW platform as the basis for its new vehicles

According to Farley, high profile mergers between small companies and joint ventures will become increasingly common with the end of combustion engines. Changes at the automaker itself indicate, simultaneously, a sign of redefinition in the industry, as Ford resorts to MEB platform, from VW, for the construction of its electric cars.

Despite being a German architecture, the manufacturer will use the platform as the basis for two SUVs with an American look. The American executive predicted that a price war between electric cars was approaching and that his company would, in the short term, sell them from US$ 25.

Speaking of prices, the 2023 Chevrolet Bolt EV starts at US$26.595 (R$127.200), while the 2023 Chevrolet Bolt EUV starts at US$28.195 (R$134.800) – both prices include shipping of US$995. , a reduction of US$ 5.900 (R$ 28.200) and US$ 6.300 (R$ 30.200), in the case of the hatchback and the SUV, respectively.

In Brazil, more affordable electric vehicles are already being suggested. As is the case with the Renault Kwid E-Tech, both in the R$140 range.

The world of communication will also undergo changes

According to the Ford executive, even the communication from automotive industry undergoes a transformation with digital media and social networks rapidly changing the way to inform the market.

Print media, such as newspapers and magazines, are in full decline and have given way to electronic media. Several specialized journalists had to join the digital to stay active. And they still dispute space today with influencers, people with no technical training or concern for credibility, however who reach millions of followers in their twitter e tik-toks of life. Those responsible for the factories' advertising budgets are following this rapid media transition, however still without an objective definition of where and how to apply them.