Ford CEO: Electric vehicle demand will transform industry

DEARBORN, Mich. (AP) — A new electric version of Ford's immensely popular F-150 pickup truck might just be the catalyst that hastens America's transition from gasoline to battery-powered vehicles.

Jim Farley, the company's new CEO, calls the introduction of an electric version of the nation's top-selling vehicle a watershed moment for Ford as well as for the auto industry. The new truck, called the F-150 Lightning and due in showrooms by next spring, will be able to travel up to 300 miles per battery charge and tow up to 10,000 pounds.

Yet Ford's commitment to the EV F-150 is hardly without risk. The company spent millions to develop the truck at a time when sales of electric vehicles remain minuscule — just 2% of the U.S. auto market. Many truck owners will be reluctant to switch from gasoline engines. And there's the distinct possibility that at least in the early months and perhaps years of production, automakers could run short of EV batteries and the scarce precious metals needed to make them.

The Associated Press spoke recently with Farley about electric vehicle sales and a global chip shortage that has hindered auto production. The interview was edited for clarity and length.

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Q: Why is the Lightning so important to Ford, and why are you offering an electric version before other models?

A: We’re starting with our icons because we know the customers the best and we can surprise them with the best execution. But the real key is the scale. We sell 1.1 million (F-Series) units a year. So these customers really trust us. If there’s a company who’s going to take them into an electric future, it’s Ford.

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Q: You’re at a base price of roughly $40,000. With a $7,500 federal tax credit, will you be even cheaper than a gas-powered F-150?

A: It’s going to be pretty...