Ford Executive States Engines Are No Longer Important, Introducing Outsourcing and China | Carscoops

      The days when a car's identity was largely determined by its engine are long gone; today, consumers prioritize different aspects.

      New car purchasers today significantly differ from those of around three decades ago, adopting new preferences.

      According to Ford’s Vice Chair, buyers no longer focus on what’s beneath the hood.

      This shift allows car manufacturers to outsource engine production and lower manufacturing costs.

      Once internal combustion engines became the standard for automobile propulsion, they became key features of cars. Distinct sounds from Italian engines, high-revving Japanese models, or American pride in engine displacement led to stereotypes that not only represented certain models but also specific brands and even entire countries.

      In the current climate of swift technological evolution, the automotive industry has not been left behind. Cars are now treated as just another commodity by today’s customers who, according to one executive, simply don’t care about the engine specifications of their vehicles.

      That executive, Ford Vice Chair John Lawler, expressed that consumers no longer consider powertrains in the same way they did three decades ago during a conference on May 28, as reported by Autonews.

      He likely has a point. The move toward electrification has changed how new buyers perceive their vehicles, and it’s not just the electric cars but also hybrids contributing to this transformation. The motives behind reducing CO2 emissions may be noted, but cars have now largely become seen as standard consumer goods, regardless of romantic notions.

      Lawler stated, “Where combustion engines used to define what a vehicle represented – the horsepower, displacement, torque, and everything else – much of that has disappeared.”

      Good News for Automakers

      Certainly, in some niches, combustion engines still reign supreme, but most consumers are indifferent to whether their vehicle features an internal combustion engine, hybrid, or fully electric powertrain, as long as it fits their budget and includes the desired features and range. Although car enthusiasts may lament this reality, manufacturers view it positively.

      This shift opens new opportunities. With engines no longer being a central feature, each brand can select from a broader range of options. They may even choose not to manufacture engines themselves, which will please shareholders by lowering expenses and increasing profits – also benefiting consumers who won’t pay inflated prices to cover the R&D of each brand’s engine development.

      Shared components, including engines, aren’t a new concept, even if automakers don’t often highlight the fact that, for example, an Audi’s V10 is essentially the same as a Lamborghini's, despite the latter being positioned at a higher price point.

      Some companies have already partnered to develop and produce new powertrains that can be utilized across various models, and even marketed to third parties looking to cut costs. A notable example is Horse, a collaboration between Renault and Geely.

      “This is a win-win business model for everyone involved,” stated Horse Powertrain CEO Matias Giannini at the Shanghai auto show two months ago. It benefits all parties, leading to mutual satisfaction, which is commendable.

      The Influence of China

      Another significant aspect is China, where local manufacturers are making significant strides, attracting buyers with their offerings. Lawler mentioned that the costs for Chinese automakers are around 30 percent lower than elsewhere globally. Competing with that is challenging.

      The straightforward answer is: you don’t. When you can’t surpass them, the most logical choice is to ally with them. Ford’s Vice Chair noted that Chinese companies possess 10-11 million excess units that they would like to sell to foreign manufacturers.

      And they will, as nobody would shy away from a 30 percent cost reduction, especially as the previously robust Chinese market declines, with more consumers turning to local brands, much to the dismay and financial loss of traditional manufacturers.

      There’s no need for automotive enthusiasts to be concerned. As long as it remains legal, we can hold on to our vehicles; failing that, there’s always the racetrack. What’s certain is that we cannot halt progress. Moreover, as Henry Ford famously remarked, “If I asked people what they wanted, they’d say ‘a faster horse.’” This serves as a reminder that it is visionaries, not consumers, who shape the future. Whether that future will be brighter or lead to dystopia is debatable. Unfortunately, we might not be around to see the outcome, rendering it somewhat irrelevant to us. For now, let’s enjoy driving while we still can!