FORD’S thrilled boss has teased a new $30,000 car while announcing a colossal “Model T moment.”
But CEO Jim Farley admitted the giant automaker’s groundbreaking plan to switch gears on production is a “risky bet.”
Ford CEO Jim Farley announced the new EV at the Louisville Assembly Plant on August 11, in Louisville, Kentucky[/caption]
Ford said its platform will be the foundation for a new generation of electric vehicles – and compete with China’s output[/caption]
Ford is to debut a new EV mid-size pickup truck that will be “as quick as a Mustang EcoBoost, and have more passenger volume than a 2025 Toyota RAV4,” he said yesterday.
The price of the four-door vehicle – available from 2027 – will start from about $30,000 and, in a snub to China, be built entirely within the United States.
Farley also appeared to issue a challenge to Elon Musk‘s Tesla.
He said, “Ford is going to deliver what no other automaker has been able to: a family of affordable, adaptable electric vehicles that offer multiple body styles for work and play — including for export — and whose LFP (lithium-iron-phosphate) batteries will be assembled in America, not imported from China.”
The new electric trucks will feature plenty of interior space – big enough to fit five adults.
It will also boast enough power to have a targeted 0-60 time as fast as a Mustang EcoBoost but with more downforce, according to Ford.
The new pickup truck will be available for domestic and international markets.
They will be powered by lower-cost batteries made at a Ford factory in Michigan.
Farley’s second major announcement was that Ford‘s Louisville Assembly Plant in Kentucky is to be converted to manufacture electric vehicles.
It’s a major U-turn for the factory, which has been producing gas-powered vehicles for 70 years.
Ford said its investment in the Louisville plant will secure 2,200 hourly jobs.
Farley said the production line overhaul would be so revolutionary that it was a once-in-a-generation experience.
HUGE RISK
But, he admitted, of Ford’s multi-billion-dollar scheme, “I can’t tell you with 100% certainty that this will all go just right.
“It is a bet. There is risk.
“The automotive industry has a graveyard littered with affordable vehicles that were launched in our country with all good intentions.
“And they fizzled out with idle plants, laid off workers and red ink. And at Ford … we set out to break that cycle.”
This is a Model T moment. It’s a big win for America’s future and for our customers everywhere
BILLIONS OF DOLLARS
Farley described the plans as, “the most radical change on how we design and how we build vehicles at Ford since the Model T.
“We are investing $5 billion so far in this effort.
“That includes approximately $2 billion to transform the Louisville Assembly Plant, securing 2,200 jobs.
“At BlueOval Battery Park Michigan, we have committed $3 billion and 1,700 jobs to assemble the LFP batteries these new vehicles will use.”
Farley said, “That’s nearly 4,000 American jobs.
“This is a Model T moment. And it’s bigger than Ford — it’s a big win for America’s future and for our customers everywhere.”
FASTER PRODUCTION
Plus, the production side will also receive a major reboot, to make the job safer for workers, and to streamline the process.
Ford said it will use a universal platform and production system for its EVs, essentially the underpinning of a vehicle that can be applied across a wide range of models.
The Louisville Assembly Plant is being revamped to cut production costs and make assembly time faster to churn out its EVs.
Ford said the assembly of its midsize – as yet unnamed – electric truck could be up to 40% faster than Louisville Assembly Plant’s current vehicles.
Farley explained, “Not only will this reimagined manufacturing process be faster and require less space, but better ergonomics will result in less twisting, reaching, and straining, allowing them to stay focused on delivering quality for our customers.”
BEAT CHINA
Sandy Munro, a veteran engineer and auto consultant who was at the Louisville event, told The New York Times, “I’d say this puts them within spitting distance of the Chinese.”
The Times noted that Farley’s main aim since taking on the role in 2020 has been to turn around Ford’s EV business and “catch up to Chinese producers.”
Ford’s new EV strategy comes as Chinese automakers are quickly expanding across the globe, offering relatively affordable electric vehicles.
This new vehicle built in Kentucky is going to be a much better solution to anything that anyone can buy from China
But, Farley stressed, “We’re not in a race to build the most electric cars.
“We’re in a race to have a sustainable electric business that’s profitable, that customers love.
“And this new vehicle built in Louisville, Kentucky, is going to be a much better solution to anything that anyone can buy from China.”
SUV CHANGES
The changes mean that the Louisville factory will stop making the Ford Escape and Lincoln Corsair small SUVs next year, according to the NYT.
The Escape was introduced in 2000 and has been one of the Ford’s best-selling SUVs.
The automaker’s ambitious plans have received a thumbs-up from Kentucky Gov. Andy Beshear.
He said on Monday that the automakers plans for the Louisville plant will strengthen a more than century-old partnership between Ford and the Bluegrass State.
