GM and Ford race to be the leaders in the next generation of automobiles—and the two companies have taken different approaches to their next steps.
Key Details
- While looking to the future, General Motors (GM) has chosen to diversify its investment in electric (EVs) and self-driving vehicles.
- Ford Motor, on the other hand, has turned away from any focus on autonomous vehicles and focused entirely on EVs and already-developed technologies.
- The automakers have long been in competition with one another, but the race for the best EVs has added another level to the competition.
- GM initially invested in EVs and autonomous vehicles first, giving it a head start. Its recent third-quarter results were significantly better than Ford’s.
Why it’s news
As interest in EVs grows, both companies are making moves toward EVs, but GM’s strategy is more aggressive than Ford’s.
GM plans to stop offering its gas-powered vehicles and only sell new EVs starting in 2035. By comparison, Ford is investing in EV development, but has kept its traditional investments at the same level.
Ford plans for around 40% of its sales to come from EVs by 2030.
Even with a focus on EVs, both companies still see a majority of sales from traditional pickups and SUVs.
Neither company has pulled ahead as a clear winner yet, but experts are watching closely. Currently, CEO Jim Farley is working to restructure aspects of Ford’s business. GM CEO Mary Barra is working to cut company costs.
Recently, Ford cut its autonomous vehicle division, saying that the technology wasn’t ready and Ford didn’t see it being valuable in the near future.
About that same time, GM Cruise CEO Kyle Vogt made comments suggesting that the company’s robotaxis would produce significant revenue within a year, CNBC reports.
GM was an early investor in EV technology, but Ford’s EV sales have outpaced GM. GM has largely focused on luxury models while Ford has repurposed its most popular sellers by “stuffing” the vehicles with EV technology.
Ford removes gas engines from vehicles and refits them with battery packs, allowing customers to have the best of both worlds—their favorite model and an EV.
