Despite Ford (F) strategy of offering electric vehicles like the Mustang Mach-e and the F-150 Lightning electric pickup truck, the Blue Oval is starting to shift gears when it comes to its electric vehicle strategy.
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According to reports from Bloomberg and Automotive newsFord is backing away from a project that involves a three-row electric vehicle instead of a new, smaller vehicle platform.
Blue Oval sources have said the company is delaying work on a planned series of large three-row electric vehicles similar in size to Ford's Explorer SUV and its Lincoln luxury brand's Aviator SUV. Instead, resources are being diverted to work on smaller, more affordable electric vehicles.
The planned large electric cruisers were expected to go on sale in early 2025, however, sources said resources have been transferred to Ford to create three models: a small SUV, a pickup truck and a “ride-sharing vehicle” about a completely new chassis. Platform for small vehicles.
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The first of the vehicles will be released at the end of 2026 and is expected to sell for about $25,000.
The secret behind-the-scenes moves mirror those mocked by Ford CEO Jim Farley, who expressed the need to compete with domestic rivals like Tesla. (TSLA) during Ford's earnings report in early February.
There, he acknowledged the existence of a previously unknown “skunkworks team” that has been working on developing a new platform for electric vehicles, expressly stating that it is focused on smaller, “low-cost” electric vehicles for a broader base of customers. customers and profitable for the company.
“All of our EV teams are ruthlessly focused on the cost and efficiency of our EV products, because the ultimate competition will be affordable Tesla and Chinese OEMs,” Farley said on the May 6 earnings conference call. of February.
These moves are expected to be Ford's first strategy to turn around its electric vehicle business, which posted losses of $4.7 billion in 2023. The Dearborn-based automaker has said it expects to lose between $5 billion and $5.5 billion more this year. Electric vehicles.
Additionally, the threat of Chinese imports from companies like (WILLPOWER) They are still on the minds of prominent figures like CEO Jim Farley, who sees much of their precious market share evaporating if they start selling in the United States.
“If you can't compete fairly with the Chinese around the world, then 20 to 30 percent of your revenue is at risk,” Farley said at a recent industry event. “We have to solve this problem. We have to address it.”
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