Ford Praise For Tesla

Thu 11th Nov 2021

One of the world’s oldest car companies has paid tribute to one of the newest in an internal speech which is sure to cause ripples in the motor industry.

Speaking at an internal meeting, Ford CEO Jim Farley has that his company can no longer ignore the competition of Tesla if they are going to succeed.

“They have resources, smart people, the Model 3 is now the best-selling vehicle in Europe,” Farley said in the meeting which has been publicly released. “Not electric. Flat out. It was the best-selling vehicle in the UK. Most months, it’s the best-selling vehicle in California. Not just electric, but overall. If we’re going to succeed, we can’t ignore this competition anymore.”

While many may suggest that Ford have being paying very close attention to Tesla previously, with the Mach-E almost a tribute to Tesla’s electric vehicles, Farley laid out three key areas where Tesla is leading the way - Direct sales, electric powertrain expertise and most importantly simplicity.

He said: “The product itself is highly differentiated from the rest of the ICE field and complexity is tiny, compared to OEMs. That allows them to have enormous reuse. Reuse that we’ve never seen in our ICE business. Tesla can scale quickly because of that complexity reduction. They can drive the cost down, which they have. They can keep processes simple.”

It’s thought that rather than criticising his own workforce, Farley was using the example of Tesla of what is possible and what to aim for. The Ford boss is not the first industry CEO to give credit to Tesla, Volkswagen CEO Herbert Diess also used Elon Musk’s company as an example in a similar speech to his own employees.