Former Ford CEO says industry faces 'reckoning' over EV goals
June 11, 2019
TEL AVIV, Israel — Former Ford Motor Co. CEO Mark Fields says the auto industry needs to tap the brakes on its expectations for electrification.
"I think the industry is going to be under a reckoning over the next 2 to 3 years," Fields said Tuesday at the EcoMotion mobility conference here. "My view is that yes, electrification is going to grow over the years, but it's not going to grow to the extent all the experts are telling you."
Fields, senior adviser at TPG, a global asset management firm, said automakers must grapple with high development costs and a lack of demand, despite promises from most major companies to electrify their lineups.
"They are going to have to first restructure the margins of the business and on top of it you're going to have to incentivize demand," Fields said. "If you throw in, during that time period, a recession that's going to happen at some point, that's going to put a lot of pressure on the OEMs."
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