Ford is one of several automakers that has adjusted its electric-vehicle plans in recent years due to market challenges and battery production issues. However, Ford is not giving up on electric vehicles entirely. The company is still working behind the scenes on an affordable EV platform with a focus on cost parity, taking inspiration from China.
According to a report from Axios, Ford is aiming to match China’s costs in building electric vehicles with its low-cost EV platform. The project involves multiple vehicle segments, including pickups, crossovers, and potentially even sedans. This marks a significant shift for Ford, which has not sold a sedan in the United States since discontinuing the Ford Fusion in 2019.
The first product to be built on the affordable EV platform will be a mid-sized pickup set for release in 2027. Ford aims to achieve cost parity with leading Chinese players by reducing the overall vehicle cost, including components such as batteries, chassis, thermal systems, inverters, and electronics. The project, led by Ford’s Skunk Works team, is a strategic move to position the company competitively in the EV market for the next decade.
While other automakers are scaling back their electric vehicle plans, Ford’s ambitious approach to affordable EVs could be a game-changer. By focusing on cost-effective solutions and global competitiveness, Ford is positioning itself for success in the rapidly evolving electric vehicle market.
In other news, Tesla is reportedly pausing production of its Model Y and Cybertruck lines for a week, signaling potential demand challenges. This marks the third production pause for Tesla since December, as the company grapples with inventory issues and fluctuating demand for its vehicles.
Meanwhile, Chinese automakers are accelerating efforts to eliminate foreign chips from their EVs, aiming for fully domestic production by 2026. Brands like SAIC Motor, Changan, Great Wall Motor, BYD, Li Auto, and Geely are leading the charge in adopting domestically-produced chips in their vehicles, aligning with China’s goal of self-reliance in semiconductor manufacturing.
As Ford continues to innovate in the EV space and Chinese automakers drive towards self-sufficiency, the electric vehicle market is experiencing rapid transformation. The shift towards affordable EVs, cost parity, and domestic chip production is reshaping the industry landscape and paving the way for a new era of electric mobility. Ford’s bold approach to affordable EVs and China’s push for self-reliance in semiconductor manufacturing are key trends to watch in the evolving electric vehicle market.