Ford CEO Jim Farley, who recently mentioned electric vehicles as the next significant shift in mobility through social media LinkedIn, is attracting attention by revealing that he plans to launch a low-cost electric vehicle (EV) priced at $30,000 in 2027. This aligns with the company’s announcement that it has been developing a dedicated EV platform for low-cost EVs in early 2024. Farley didn’t disclose any information about the car, but he said it was designed to compete with Chinese EVs from BYD, and the low-cost EV Tesla is working on. In detail, Ford recruited engineers from Tesla, Rivian, Apple, and Lucid to develop low-cost EVs.
In an interview with CNBC, Farley said radical changes must be made to reach profitable EVs. Accordingly, Ford postponed the launch schedule of the three-row electric SUV and the launch of the next-generation electric pickup truck T3 to 2026.
“These big, huge, enormous EVs, they’re never going to make money. The battery is $50,000… The batteries will never be affordable,” Farley stated. He emphasized that large-capacity battery packs are needed to increase the driving range of large EVs, making them more expensive. Above all, he added that to compete with Chinese automakers such as BYD, the company must produce profitable EVs over the next five years.
He explained that Ford already has competition that makes money on EVs, is expanding globally, and is building their supply chains. “And if we don’t make profitable EVs in the next five years, what is the future? We will just shrink into North America,” he added.
The shift in approach by Farley, who has consistently advocated for a focus on profitability, is likely to influence Ford’s future. However, since the plan to introduce low-cost electric vehicles isn’t set until 2027, internal combustion engine vehicles will remain mainstream until then. This timeline raises questions about the pace at which significant changes can be expected to occur.
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