Ford is making a formal pivot to address smaller, more affordable electric vehicles. Ford CEO Jim Farley highlighted the progress of the company’s secret-low-cost electric vehicle (EV) platform at its Long Beach facility, as a team of former executives from Tesla, Rivian, Lucid, and Apple work together to create some of the world’s top-performing EVs. As Ford seeks to balance affordability with its electric vehicle (EV) strategy, its new common platform presents an opportunity to revamp future Focus and Fiesta models as electrified variants.
As Ford’s European operations teeter on the brink of insolvency, its salvation might just lie with affordable electric vehicles. Ford’s skunkworks team unveiled in February that the automaker was developing an affordable electric vehicle (EV) platform.
As the fledgling entity gains momentum, it has attracted approximately 50 former Rivian employees, along with an additional 20 individuals from Tesla and Lucid, as well as a small contingent from Apple, all joining forces within the past few months.
Led by Alan Clarke, a renowned expert in his own right, having worked with Tesla’s best-selling Model Y, Farley boasted that Ford has “some of the finest EV engineers” working on the project.
Ford had already misallocated $1.1 billion in the second quarter for electric vehicles (EVs), Farley provided further details about its forthcoming platform. Ford’s CEO, Jim Farley, described the electric vehicle (EV) journey as “humbling” during his company’s Q2 earnings call last week, but stated that he is still pleased it started over 2.5 years ago.
Ford’s electric vehicle (EV) platform poised to energize new Focus and Fiesta designs?
Marin Gjaja, CEO of Ford’s Model e EV division, explained that the company is dedicating a second period to discussing affordability.
Ford recently launched its second electric vehicle, the Capri, in Europe, with its first being built on Volkswagen’s MEB platform, admitting that “we don’t actually have a lot within the inexpensive phase.” The first was the electrically-powered Explorer.
Ford’s first Explorer electric vehicle rolled off the production line at its state-of-the-art EV facility in Cologne last month. The final week, Ford has reaped significant benefits from Volkswagen’s Modular Electric Box (MEB) platform.
The new electric vehicle (EV) platform will incorporate several lessons learned from previous models. According to Farley, Ford, along with Rivian and Tesla, is one of the few original equipment manufacturers outside of China that exert control over software across the entire automotive sector.
Among its numerous key factors for success is Ford’s ability to “align its pricing with that of Chinese original equipment manufacturers (OEMs) and Tesla, especially in the case of affordable electric vehicles,” said Farley.
“Gjaja reemphasized the objective, posing the question: ‘How can we effectively compete during that stage, especially when you have a low-cost manufacturing hub in countries like China producing affordably priced vehicles?’
Ford aims to encourage customers to upgrade to an electric vehicle like the Explorer EV. “While exploring the concept of starting a new initiative, Gjaja asked, ‘However do you begin?’ She clarified, ‘That’s what we’re doing within the US with an affordable platform, and there’s no reason why that same platform wouldn’t be suitable for creating products in Europe as well.'”
According to Gjaja, the first model built on the company’s new platform is slated for a US release in late 2026 or early 2027.
The feedback suggests that Ford’s low-cost EV platform could power the electric successors of its Focus and Fiesta models. Ford is rebranding itself as a player in the premium automotive space with the introduction of high-end models like the Explorer and Puma, a departure from its traditional image as a provider of low-cost, dependable transportation.
Electrek’s Take
As Ford’s European sales dwindle, can its latest electric vehicle (EV) platform breathe new life into the brand’s fortunes on the continent? Approximately 98 percent of Ford’s revenue stems primarily from the United States market. As Chinese electric vehicle (EV) brands like BYD gain traction in Europe, securing a significant market share in the past month, Ford is adopting a fresh approach to reignite its own momentum.
Ford has parted ways with its European operations chief, Martin Sander, who was subsequently appointed by Volkswagen last month. The significance of this loss lies in the crucial role Sander played in bringing the Electrical Explorer to fruition on the market.
Ford’s restructuring efforts led to the elimination of his location within the region. Ford has confirmed that the changes came into effect this month as part of a wider transformation of its European operations.
Despite surging EV gross sales, with nearly 24,000 electric vehicles sold in the US during Q2, Ford is scaling back several EV projects due to “slower-than-expected” demand. While Ford still held the number two spot for electric vehicle (EV) sales in the US behind Tesla, its competitors such as Hyundai-Kia and General Motors were rapidly closing the gap.
Rivian’s Illinois plant is poised to restart production following a shutdown in April for facility upgrades. The emerging electric vehicle manufacturer is poised to siphon market share from Ford by introducing the rugged R1T pickup truck and R1S SUV, two compelling offerings that cater to customers seeking sustainable mobility solutions.
Ford’s global market share may contract to primarily focus on North America as Chinese electric vehicle (EV) manufacturers like BYD continue their upward trajectory, according to Farley. Ford’s CEO struggles to comprehend the imperative for the company to produce compelling electric vehicles (EVs) within the next five years.
Ford aims to revolutionize its electric vehicle lineup with a pioneering low-cost platform design. As the electric vehicle (EV) landscape continues to evolve, multiple manufacturers including Kia, Hyundai, Volvo, Stellantis, and others are now introducing affordable options to the market. Automotive giants such as Volkswagen, General Motors, and Toyota are all poised to make similar moves in the coming years. Will Ford discover its market?
