Former Ford Chief Executive Officer Mark Fields remarked on Tuesday that major American automobile manufacturers had misjudged the level of consumer enthusiasm when they dramatically increased production of electric vehicles. Speaking during an appearance on CNBC’s program ‘Power Lunch,’ the veteran industry leader—now 64 years old—explained that over the past few years, automakers had pursued a near-aggressive expansion strategy, devoting substantial resources and manufacturing capacity to the electric vehicle segment. According to Fields, this acceleration was carried out with remarkable confidence but without sufficient attention to one vital question: how to truly persuade the average car buyer to make the transition from traditional internal combustion engines to vehicles powered entirely by electricity.
Fields elaborated that, in hindsight, automakers had focused excessively on scaling up production lines and constructing new facilities rather than engaging in a genuine dialogue about consumer psychology—specifically, what kinds of incentives, assurances, or experiences would convince buyers to embrace EV technology. Despite multiple requests from Business Insider for additional insight or clarification, representatives for Fields did not issue any further comment.
The former executive’s perspective carries considerable weight given his extensive experience at Ford Motor Company, a career he began in 1989 upon earning his Master of Business Administration from Harvard Business School. Over nearly three decades, Fields occupied a range of crucial leadership positions that covered strategic planning, international operations, and corporate restructuring. Before his appointment as Ford’s Chief Executive Officer in 2014—a position he held until 2017—he served as the company’s Chief Operating Officer between 2012 and 2014, overseeing much of Ford’s global operational performance.
Reflecting on the broader automotive sector, Fields noted that some of the bold investments carmakers made in the electric vehicle realm have shown signs of unraveling over the past eighteen months. He cited General Motors as a prominent example. On Tuesday, GM disclosed in a regulatory filing that it would take a $1.6 billion accounting charge. This decision was attributed to what the company described as a ‘planned strategic realignment’ of its manufacturing footprint and production capacity, adjusted to better align supply with actual consumer demand for electric vehicles.
GM further indicated that it expected the pace of EV adoption in the United States to decelerate following the removal of federal incentives introduced during previous administrations. Under President Biden’s policy framework, prospective buyers had benefited from a $7,500 federal tax credit for purchasing a new EV and a $4,000 credit for buying a used one—both programs designed to stimulate demand and make the technology more financially accessible. However, these incentives officially expired on September 30 after the Trump administration rescinded such measures, leaving automakers to confront a less favorable market landscape.
Fields observed that this development illuminated a broader misalignment between corporate ambition and consumer behavior. What manufacturers once deemed a strategic advantage—boasting a comprehensive lineup of electric vehicles across multiple market segments—has, at least for now, become something of an operational burden. He likened this shift to an ‘albatross’ around the industry’s neck, suggesting that the current and medium-term demand for EVs will likely fall short of earlier projections, forcing companies to recalibrate expectations.
Within the industry, senior executives remain divided on the extent to which the rollback of federal incentives has harmed the market for electric vehicles in the United States. Ford’s current CEO, Jim Farley, offered a relatively cautious outlook last month, warning that the expiration of tax credits could potentially reduce national EV sales volume by as much as half. He emphasized that the American EV sector would remain vibrant and innovative but conceded that its scale would be substantially smaller than what industry leaders had envisioned during the height of the electrification boom.
By contrast, former Tesla president Jon McNeill expressed a more optimistic view in a subsequent interview with CNBC on October 2. McNeill argued that the EV market possesses enough inherent momentum to continue expanding even in the absence of government subsidies, citing the example of European countries such as France and Germany. In those markets, incentives had been phased out several years earlier, yet consumer interest and adoption persisted—driven largely by the steady introduction of new electric models from various original equipment manufacturers (OEMs). In McNeill’s assessment, the same pattern is unfolding in the United States, where growing competition, technological improvements, and product diversity may help sustain long-term growth despite policy changes.
Fields’s remarks collectively offer a sober reflection on an industry in transition—a reminder that even when technological innovation surges forward, market success ultimately hinges on understanding and anticipating the consumer’s mindset. His comments underscore the tension between visionary ambition and pragmatic realism that continues to define the evolving story of electric vehicle adoption.
Sourse: https://www.businessinsider.com/former-ford-ceo-mark-fields-automaker-invest-ev-consumer-demand-2025-10
