Welcome to the latest update on the future of transportation. This week’s news includes Ford’s preparations for the future, Waymo’s self-driving car software recall, and layoffs at another AV startup. Let’s dive into the details.
Key Takeaway
Ford is gearing up to tackle competition from Chinese EV automakers and Tesla by focusing on developing a low-cost EV and cutting-edge software. The company is also striving to achieve significant cost savings and improve the quality of its vehicles.
Ford’s Focus on Thwarting Threats
During a recent visit to Detroit, Ford executives revealed their focus for 2024 and beyond. With Chinese EV automakers and Tesla posing as major competitors, Ford is gearing up to combat these threats. The company aims to develop a low-cost EV and cutting-edge software to stay ahead in the game. According to Ford CFO John Lawler, Chinese automakers have become competitive and are expanding into other regions, posing a long-term challenge for traditional automakers.
Cost Savings and Quality Improvement
Aside from competition, Ford CEO Jim Farley is determined to achieve $2 billion in cost savings across the company’s industrial system. Improving the quality of new vehicles is a key part of this strategy, directly impacting warranty costs. Farley emphasized this during a recent interview at Wolfe Research’s Global Auto and Auto Tech Conference in New York.
Faraday Future’s Financial Struggles
On a different note, Faraday Future, an EV startup, is facing financial challenges. The company is at risk of losing its LA headquarters due to unpaid rent, with the current bill amounting to close to $1 million.
