Ford asks suppliers for ideas to cut EV costs in an all-win-or-lose push for profitability

Ford is making a big push to cut costs for its electric vehicles (EVs) and stay competitive in the market.

The company is asking its suppliers for ideas to reduce EV costs,

as it continues to face significant losses in its Model e unit.

Ford has introduced significant price reductions to keep up with Tesla's price cuts,

resulting in increased demand but also significant costs.

For example, after dropping Mustang Mach-E prices by 17%,

volume shot up by 141%.

Despite the increased demand, Ford's Model e EV business lost another $1.3 billion in the first quarter of this year,

with projected losses of $5.5 billion for the year.

The company is working to substantially reduce battery costs and optimize profitability.

Ford is seeking investment ideas from its suppliers to support profitability,

asking for "incremental cost-reduction proposals" for current and next-gen EVs.

The company is emphasizing the importance of achieving further levels of material cost efficiency.

Ford's collaboration with suppliers to cut EV costs is a crucial step in its efforts to turn around its EV business and achieve profitability.

This approach reflects the company's determination to address the challenges it faces in the EV market.