June 3, 2022—Ford Motor CEO Jim Farley believes a major shakeout is coming that will impact the fast-growing electric vehicle segment of the auto industry.
In a CNBC report, Farley said he believes the need for large capital investments to compete in the electric vehicle market will lead to acquisitions of smaller companies by larger players. He also believed more joint ventures would pop up within the industry.
“There will be some big winners, some people who transition, some who won’t. Many of the small players cannot afford to make this transition,” Farley said during the Bernstein 38th annual Strategic Decisions Conference.
The Ford Motor CEO said he expects China to take a major stake in the industry as a top producer and encouraged traditional automakers to focus on making EVs affordable by cutting down on costs where necessary, while still staying profitable.
