Ford has revealed that it took an $800 million hit from the Trump administration’s tariffs in the second quarter, according to its earnings report released on Wednesday. However, the more significant news from the report is that the automaker will provide more details about its upcoming electric vehicle plans next month.
During the second-quarter earnings call, Ford CEO Jim Farley announced that August 11 will be a significant day for the company. He stated, “We will be in Kentucky to share more about our plans to design and build a breakthrough electric vehicle and platform in the U.S.” Farley likened this upcoming announcement to a “Model T moment” for Ford, referencing the iconic mass-produced, affordable vehicle that revolutionized transportation in the early 1900s.
Last year, Ford had hinted at a secretive “skunkworks” project aimed at developing low-cost electric vehicles for the mass market. Reports suggested that this project would result in the creation of multiple EVs, including a compact SUV, a small pickup truck, and potentially a vehicle tailored for delivery services.
While EV sales in the U.S. have been fluctuating due to changes in tax credits and fuel economy regulations, Ford has shifted its focus to hybrids and its profitable gas SUV and truck lineup. The company has also revised its electrification roadmap, canceling a planned three-row electric SUV.
Despite these changes, Ford remains committed to the electric vehicle market. The upcoming August 11 announcement will introduce a new family of vehicles that promise cutting-edge technology, efficiency, space, and features.
Ford has faced challenges in the EV sector, with only three electric models in its portfolio: the Mustang Mach-E, F-150 Lightning, and E-Transit van. In contrast, competitors like General Motors have expanded their EV lineup significantly. Chevrolet, a GM brand, is now the second-best-selling EV brand in the U.S., trailing only Tesla.
To bolster its EV efforts, Ford plans to manufacture its next-generation electric vehicles in the U.S., some of which will be powered by low-cost lithium iron phosphate (LFP) batteries. The company is investing $3 billion in the BlueOval Battery Park Michigan, which will commence production of automotive-grade LFP cells next year.
Despite the challenges and competition in the EV market, Ford is determined to make a mark with its upcoming electric vehicle lineup. Stay tuned for more updates on Ford’s electrification plans as the company continues to innovate and adapt to the changing automotive landscape.