Ford announces a potential 'Model-T Revolution' by the upcoming week
Ford CEO Jim Farley has announced a new electric vehicle (EV) roadmap that will be unveiled on August 11, 2023. This strategy, described by Farley as a "Model T moment" for the company, involves launching a breakthrough EV and a new flexible EV platform focused on smaller, low-cost, and profitable vehicles built in the U.S.
The goal of this new approach is to compete more effectively with Chinese EV manufacturers, such as BYD and Geely, by delivering affordable, efficient, and technologically advanced electric vehicles at scale. Farley explicitly named Chinese automakers as Ford’s benchmark, acknowledging that Ford currently lags behind them and aiming to catch up by emphasizing profitability and operational efficiency.
Key points of Ford's new strategy include:
- Introduction of a new EV platform capable of supporting multiple vehicle types at volume, focusing on affordability and profitability rather than just scale.
- A shift in mindset to compete directly with Chinese EV makers, who are seen as the new standard for technology and cost competitiveness.
- Manufacturing the new EVs in the U.S. with innovations in technology, space, and features that evoke the transformative impact of the original Model T.
This approach signifies Ford's move away from traditional automaker rivalry towards benchmarking against fast-moving Chinese EV companies, reflecting broader industry pressures to innovate rapidly and produce affordable electric vehicles efficiently at large scale.
In addition, Ford will continue offering a range of powertrains, including hybrids and extended-range electric vehicles, to hedge against EV market fluctuations. The company has earmarked the Louisville Assembly Plant for a $1.2 billion investment and the production of an all-new EV product. Ford is retooling the Louisville Assembly Plant to support EV production, including the addition of charging infrastructure.
Furthermore, Ford's leadership took an executive trip to China to learn from Chinese automakers, and the new EV strategy aims to distance Ford from its first-generation EVs and signal a more competitive approach against global, especially Chinese, EV manufacturers. The refreshed EV approach will concentrate resources on a limited number of body styles, known as "top hats", on flexible vehicle platforms.
Ford's new EV strategy will focus on American engineering and production, and the company's proximity to the BlueOval SK Battery Park in Kentucky and Ford's lithium iron phosphate (LFP) battery plant in Marshall, Michigan, reinforces the company's U.S.-centric production model. The new strategy will also focus on studying Chinese automakers' vertically integrated supply chains and cost-efficient platforms.
Stay tuned for more updates on Ford's new EV roadmap, which will be officially unveiled on August 11, 2023, at the Louisville Assembly Plant, the site of the announcement and the future production facility for Ford's new family of EV vehicles offering advanced technology, efficiency, space, and features.
[1] Ford Media Center. (2023). Ford to radically reengineer and transform its engineering, supply chain, and manufacturing processes. [Press release]
[2] Ford Media Center. (2023). Ford to invest $1.2 billion in Louisville Assembly Plant for all-new EV product. [Press release]
The new EV strategy by Ford emphasizes the integration of cutting-edge technology, aiming to rival Chinese EV manufacturers such as BYD and Geely in terms of efficiency, affordability, and technological advancements. The upcoming unveil of Ford's EV roadmap is expected to showcase this tech-focused approach on August 11, 2023.
