Ford Joins the EV Offensive: Price Wars are Headed Your Way
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Ford wants a slice of the EV pie! The US car giant is investing a whopping two billion dollars in its plant in Louisville, Kentucky, to place more affordable electric cars on the road from 2027. The aim? To stop the growing tide of competition from China, especially brands such as BYD, which offer their electric cars at competitive prices.
Ford's Boss Places a New e-car Bet
Ford boss Jim Farley paints a realistic picture, however, and warns: "I can't promise that everything will run smoothly. That's for sure." Sounds honest enough — and shows how big the challenge is for the traditional car manufacturer. The goal? To launch a completely new model series from 2027. What will be part of the lineup? A medium-sized electric pickup with four doors, which will be available for just $30,000. It will be manufactured in Louisville itself. In addition to new models, the investment will also create jobs — at least 2,200 new jobs is the target.
The pressure is enormous: while the average price of a car in the USA was around $47,000 in June, many Chinese manufacturers are already offering their vehicles for between $10,000 and $25,000. To keep up with the pace, Ford has pieced together a special team in California with people who previously worked at Tesla and Rivian.
Lithium iron phosphate (LFP) batteries are an important aspect in achieving lower prices. Not only are they cheaper, they are also cobalt- and nickel-free. They are being developed in cooperation with the Chinese battery giant CATL. Similar batteries are already being used in entry-level models from other manufacturers.
Ford has already scaled back bold plans in the past after incurring high losses. This year, the e-car and software division is expecting to chalk up a loss of up to $5.5 billion. What's more? In the first half of the year, US sales of the three electric car models on offer fell by 12 percent, while interest in hybrid vehicles increased by a whopping 27 percent.
What About the Rest of the World?
Yes, what about the rest of the world? Over in Germany, Ford currently offers two electric SUVs — the Explorer and the Capri — as well as the all-electric Puma Gen-E city car. However, you would have looked in vain to date for a compact electric car like the Fiesta or Focus. Will this change with the new strategy? We remain curious — and will keep you updated, of course.
