During the company’s fourth-quarter and full-year earnings call, Ford CEO Jim Farley revealed that a small team within Ford has been secretly developing a low-cost platform for smaller electric vehicles for the past two years.
Farley described the team as a “super-talented skunkworks team” that operated independently of the main Ford business. He explained that they have developed a flexible platform with the ability to deploy to various types of vehicles, become an extensive base for software and services, and adapt to changing market demands. Ford has shifted its focus on spending to prioritize smaller electric vehicles based on this innovative platform.
One of the major obstacles to the widespread adoption of electric cars is affordability, with most of these vehicles carrying premium price tags, limiting options for budget-conscious buyers. Farley pointed out that none of Ford’s current electric offerings are considered “cheap,” citing the high costs of the Mustang Mach-E SUV and the F-150 Lightning pickup.
Farley also acknowledged that maintaining affordability is crucial to compete with Tesla’s upcoming cheaper models and Chinese manufacturers, which are expanding their presence in the global EV market.