Al Root
Ford Motor is having a "Model T moment," announcing plans to reinvent car manufacturing to produce a new generation of affordable electric vehicles to better compete with the likes of Tesla and China's BYD.
Monday, the Dearborn, Mich.-based auto maker unveiled its "universal EV platform, at its assembly plant in Louisville, Ky. Using the new platform, it will be possible to assemble a car 40% faster than using traditional processes. The new EVs produced on it will have 20% fewer parts.
The event can be watched here.
The first vehicle will be a mid-sized pickup truck seating five passengers, due out in 2027. Ford says it will be as fast as versions of its Mustang muscle car and have more interior space than a Toyota RAV4, which is one of the best-selling vehicles in the world.
The next generation of Ford EVs will be produced on a modified assembly line with three branches that meet, making the process a little different from the mostly linear assembly lines used by many car makers today. Ford will also invest in more automation and castings, and make the EV battery pack a structural component in the car -- elements Tesla has employed in its manufacturing process.
"This is a bold and difficult undertaking to compete with the best in the world," said Doug Field, Ford's chief EV, digital, and design officer.
Ford will invest some $5 billion, including $2 billion in Kentucky, creating an estimated 4,000 jobs, to bring its universal platform to life.
"We really see not the global OEMs as a competitive set for our next generation of EVs. We see the Chinese, companies like Geely and BYD," said CEO Jim Farley in July on his company's second-quarter earnings conference call. "And that's how we built our vehicle, how we've engineered, what kind of supply chain we've used, and the kind of low content in our manufacturing."
BYD only makes hybrid and all-electric cars. It sells the most all-electric cars in the world, even more than Tesla. BYD passed Elon Musk's company partly by offering lower-priced models.
Ford is unique among traditional auto makers in that it discloses the financial performance of its EV division. Model e, as the segment is named, lost $1.3 billion in the second quarter, with vehicle sales of about 60,000 units, up 128% year over year. The per-car loss -- operating profit divided by unit sales -- fell to roughly $22,000 per car from $44,000 a year ago.
The coming electric mid-size truck will utilize lithium iron phosphate, or LFP, batteries, which are cheaper and less controversial than batteries using cobalt and nickel. Lower costs will be key. Ford plans to sell the truck starting at about $30,000.
The company didn't provide profitability goals early Monday, but making money from the Model e division will depend on a combination of attractive models, higher sales volumes, and lower costs.
Selling EVs in the U.S., however, is about to get a little harder. This is the last quarter buyers can qualify for the federal purchase tax credit worth up to $7,500. That benefit was eliminated in President Donald Trump's tax and spending bill passed on July 4.
"This is a Model T moment for us at Ford, a chance to bring a new family of vehicles to the world that offer incredible technology, efficiency, space, and features," Farley said in July.
The Model T was launched by Ford in 1908. It symbolizes the power of the assembly line to produce affordable vehicles. Ford is hoping its next generation of EVs, built in a new way, will be as impactful in the 21st century as the Model T was in the 20th century.
Ford stock was up 1.6% in early trading at $11.36, while the S&P 500 and Dow Jones Industrial Average were flat and down 0.1%, respectively.
Coming into Monday trading, Ford stock was up about 13% year to date, and up about 11% over the past 12 months.
Write to Al Root at allen.root@dowjones.com
This content was created by Barron's, which is operated by Dow Jones & Co. Barron's is published independently from Dow Jones Newswires and The Wall Street Journal.
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August 11, 2025 10:30 ET (14:30 GMT)
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