New disruptors in the electric-van segment will struggle to compete with Ford on costs, said Hans Schep, the automaker's head of commercial vehicles in Europe.
"I'm not worried about newcomers," Schep told Automotive News Europe, citing the company's low-cost manufacturing in Turkey along with economies of scale from the company's alliance with Volkswagen Group as the reasons that give the automaker an advantage.
"That scale is something that is very hard to compete with if you are trying to get volume out of a micro-factory or a few micro-factories," he said.
The micro-factory reference is in relation to Arrival, which plans to build its electric vans and buses in small-scale factories with a maximum of 10,000 units. The low-capital expenditure to set these up and their proximity to markets will give the company an edge over competitors, the UK startup has said.
"Because micro-factories are profitable at a lower volume you can start to create much more customizable vehicles for the local places you serve," Avinash Rugoobur, Arrival's president, told Automotive News Europe in January.
Arrival investor UPS has ordered 10,000 vans from the company with the option of 10,000 more. The first vehicles are expected to start production in the third quarter next year, Arrival has said.