Ford Exec Declares Engines No Longer Matter, Enter Outsourcing And China

- New car buyers differ a lot from those of, say, 30 years ago and have another set of priorities.
- Ford’s Vice Chair believes that consumers are no longer interested in what’s under the hood.
- This gives automakers the freedom to outsource their engines and, thus, reduce production costs.
Since internal combustion engines were adopted as the de facto mode of propulsion for automobiles, they became one of their most defining characteristics. Sonorous Italians, ultra-high revving Japanese, or “no replacement for displacement” Americans: those stereotypes exist simply because said engines became synonymous not just with certain models, but brands (and even countries) as a whole.
Today, we live in a world that has experienced a rapid technological advancement in a relatively short time, and cars are no exception. In fact, they have become just another commodity to the new generation of buyers who, if at least one exec is to be believed, simply don’t care what’s under the hood of their ride.
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That executive is none other than Ford Vice Chair John Lawler, so his opinion has a certain gravity. “I don’t think that consumers really think about powertrains the way they did 30 years ago”, he said on May 28 during Bernstein’s strategic decisions conference, according to Autonews.

He is probably right. The shift to electrification has transformed the way new car buyers view their purchases, and it’s not just electric vehicles, but hybrids that have contributed to that. Blame the effort to reduce CO2 emissions if you have to, but there’s no hiding from the truth; nowadays, cars fall under the “white goods” category, and romantics be damned.
“Where [combustion engines] defined what a vehicle was – the horsepower, the displacement, the torque and everything about the vehicle – I think a lot of that is gone,” Lawler explained.
Music To Automakers’ Ears
Sure, in certain niches combustion is still king, but the vast majority of customers don’t give a damn whether their car comes with an ICE, hybrid or all-electric powertrain as long as it’s priced withing their reach and has the features and range they desire. And while petrolheads may bemoan that reality, automakers welcome it with open arms.
That’s because it opens up hitherto unavailable possibilities. Since engines are no longer a defining trait, each brand is free to choose from a much wider array of units. What’s more, it doesn’t even have to make them itself which, much to shareholders’ joy, will lower costs and increase profit – plus it can benefit the end user, who won’t have to pay the premium needed to cover the R&D each maker’s department spent in creating each engine.
Parts sharing is nothing new, and neither is engine sharing, even if carmakers don’t exactly advertise the fact that an Audi’s V10, for instance, is basically the same as a Lamborghini‘s despite the latter having a significantly higher price tag.

Some have already formed partnerships to develop and built new powertrains that will be used in a multitude of models with different badges and even sold to third parties who want to cut down on costs (ed’s note: who doesn’t?). Horse, Renault’s and Geely’s joint venture, is a good example.
“It’s a win-win business model for everybody,” Horse Powertrain CEO Matias Giannini said during the Shanghai auto show two months ago. Of course it is: everyone gets what they want, so everyone’s happy. And there’s nothing wrong with that, is there?
The China Syndrome
Another factor that plays a huge role is China. Its automakers are making inroads left, right, and center and buyers are lapping up what they have to offer. According to Lawler, the costs they incur are 30 percent lower than anyone else in the world. How can you compete with that?
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The answer is simple: you don’t. And since you can’t beat them, your best course of action is to join them. The Blue Oval’s Vice Chair claims that the Chinese have 10-11 million units of excess capacity and they’d love for foreigners to come in and fill that void.

And come they will, because they won’t say no to a 30 percent cost reduction. Especially since the well that used to be the Chinese market has now dried up and locals increasingly flock to domestic brands, much to legacy automakers’ dismay and loss of serious income.
No need to fret, fellow petrolheads. We can always hold on to our rides for as long as it’s legal to drive them on public roads; then, there’s always the track. The one thing we can’t do is hold back progress. Besides, even Henry Ford famously said “If I asked people what they wanted, they’d tell me ‘a faster horse'”, and that shows, yet again, that customers don’t create the future; visionaries do.
Whether it’ll be a better future or a dystopia is up for debate. Sadly, we probably won’t be around to find out, so it’s a moot point anyway as far as we’re concerned. Let’s burn some rubber while we still can, shall we?
