Ford CEO Urges Americans to Reignite Their Affection for Small Cars the Company Abandoned

In a surprising twist, Ford CEO Jim Farley, who presided over the company’s elimination of sedans and compact cars in 2019, is now praising the benefits of smaller vehicles. This is curious, considering Ford’s recent emphasis on larger SUVs and pickup trucks, which continue to grow in size. As the leading producer of sizable vehicles in the U.S., Ford’s F-150 has maintained its status as the nation’s best-selling model annually. With the automotive industry moving toward electric vehicles (EVs), Farley suggests that Americans need to shift away from what he describes as “monster vehicles” and rediscover their appreciation for smaller cars, as reported by CNBC.

One could argue that Ford has played a significant role in steering consumers away from compact cars and promoting larger vehicles, which makes Farley’s newfound enthusiasm somewhat frustrating. It is worth noting that this doesn’t imply a sudden affection for the small cars that dominate markets in Europe and China. Even in America, Ford’s competitors, like GM, are finding success with compact models such as the Chevy Trax.

Farley emphasized to CNBC that larger vehicles present considerable weight challenges, complicating the production of EVs due to battery costs. He argued, “To achieve a profitable EV, automakers must make significant changes. Our first priority is investing in smaller, more affordable EVs. These large EVs will never be profitable. A battery costs $50,000, and they will never be affordable.”

Farley is not exactly lamenting the discontinuation of models like the Ford Fiesta or advocating for the Puma’s return, although he has previously expressed a desire for the latter. His newfound advocacy for smaller cars is, in reality, connected to his responsibility as CEO to enhance profitability. As Ford aims to develop a $30,000 EV by 2027—one that must, to be profitable, be compact—Farley is attempting to encourage American consumers to reconsider small vehicles, a category Ford has largely neglected. He stated, “We need to rekindle our love for smaller vehicles. It’s crucial for our society and the adoption of EVs. We are enamored with these large vehicles—and while I love them too—it’s a significant concern regarding weight.”

Ford later clarified to journalists that Farley’s comments were directed at larger models such as the F-Series Super Duty, which would require substantial batteries for extended ranges. However, this doesn’t absolve Ford of responsibility, as it emphasizes that heavy EVs are not practical and criticizes the demand for longer ranges, which many U.S. consumers still expect.

Globally, the best-selling electric vehicle models tend to be smaller compact cars with modest battery capacity and more limited ranges. For instance, in China, the base model Wuling Hong Guang Mini EV offers under 100 miles of range, with a maximum of about 170 miles. Similarly, the BYD Dolphin Mini available in Mexico can reach just under 200 miles (according to NEDC testing). It’s these kinds of small EVs from China that are raising concerns for Ford and other automakers. Farley cautioned, “If we can’t achieve profitability with our EVs, we’ll be up against competitors who dominate the largest market globally and are already developing their supply chains worldwide. If we don’t start producing profitable EVs within five years, what does our future look like? We risk shrinking to only the North American market.”

Despite this, it is significant that Ford is hinting at a possible revival of compact cars in North America. While it is doubtful that Ford will produce vehicles to rival the smallest models from Wuling and BYD, the company may once again consider small entry-level cars for the U.S. market. Perhaps, in the future, we might even see electrified versions of classic models like the Ford Fiesta ST, Focus SVT, Escort ZX2, or Probe. While that may be a long shot, it’s nice to dream.