Ford's Model T was one of the primary catalysts that sparked the automotive industry — and the automaker's current CEO, Jim Farley, seems to be hoping to channel some of that energy 100 years later, as Farley says the Blue Oval's next electric vehicle will be the brand's modern "Model T moment."
This hopeful claim was announced during Ford's second-quarter earnings call on Wednesday, during which Jim Farley revealed a few details about the automaker's incoming EV. "August 11 will be a big day for us at Ford. We will be in Kentucky to share more about our plans to design and build a breakthrough electric vehicle and a platform in the U.S. This is a Model T moment for us at Ford," Farley said on the hour-long call.
Beyond some generic messaging about the efficiency of the new EV platform, Farley didn't provide much substance surrounding its incoming electric models. However, you can piece together a glimpse into the future from previous statements made by Farley, specifically surrounding its "Skunkworks" development program. Reporting by Bloomberg suggests that Ford has developed a low-cost EV platform that will spawn three new models, including a "compact SUV, a small pickup, and, potentially, a vehicle that could be used for ride-hailing."
The first of these news models will allegedly have a prospective price tag of around $25,000. This kind of price has become the supposed benchmark for broader EV adoption, as current average costs to buy a new electric model rise above $50,000. Similarly, Ford's desire to launch an affordable EV as well as a ride-hailing focused vehicle are direct shots at Tesla, a brand that Ford has fought a losing battle against for annual EV sales supremacy. The choice to launch a $25,000 EV could play in Ford's favor even more so now, as Tesla CEO Elon Musk reportedly nixed the development of Tesla's sub-$30,000 EV in favor of a cheaper variant of the Model Y.
Lithium-ion phosphate (LFP) batteries are reportedly key to Ford's incoming electric offerings. The business benefits of LFP batteries include cheaper manufacturing costs and improved energy retention, as exampled by their usage on more affordable versions of Ford Mustang Mach-E. Chevrolet's revived 2027 Bolt EV, which is likely to be one of Ford's key competitors, is reported to use LFP batteries as well.
Ford's internal organization dubs its EV development "Ford Model-E," a program that Farley explained is doing its best to lower material costs and revamp supply claims away from overseas suppliers. The majority of Farley's insights about Ford's electric program focused on the need to bring battery manufacturing and vehicle production at-large back home — a feat that is already underway at the automaker's BlueOval Battery Park in Michigan.
Figures provided during the earnings call show that hybrid and battery-electric models make up almost 14% of Ford's current U.S. sales mix, a number that Ford is clearly focused on improving. Will its new EV lineup be the spark that lights an electric bonfire? (Of sales, of course, not the kind that can take out cargo ships,.) We'll have to wait and see.
You Might Also Like
Comments