Ford Takes on Tesla and Chinese Rivals with New Affordable Electric Vehicle Platform
Can Ford’s new affordable EV platform disrupt Tesla’s dominance and challenge the Chinese competitors?
Ford is making a strategic move to challenge Tesla and Chinese competitors by developing a smaller and cheaper electric vehicle (EV) platform. The aim is to create an upcoming model that will not only be cost-effective but also offer a wide range of software and services. Ford’s CEO, Jim Farley, emphasized the importance of affordability and efficiency in their EV products.
As part of Ford’s end-of-2023 financial report, CEO Jim Farley revealed that the company has been working on a new electric vehicle platform for the past two years. This platform, developed by a dedicated team, aims to challenge Tesla’s dominance and the growing presence of Chinese OEMs in the EV market. Farley described the team as a ‘super-talented skunkworks,’ highlighting their innovative approach outside of the brand’s conventional methods.
Ford’s new platform is designed to be flexible, allowing for its deployment in various types of vehicles. This adaptability will not only make production more efficient but also create a substantial install base for software and services. Recognizing the importance of cost, Ford’s EV teams are focusing on developing affordable options to compete with Tesla’s forthcoming $25,000 model and the offerings of Chinese OEMs.
Tesla currently holds a significant share of the US EV market, with approximately 55% of battery-powered vehicle sales in 2022. In contrast, Ford sold 72,608 EVs in the US throughout 2023, accounting for a six percent market share. However, Ford’s current EV lineup, including the F-150 Lightning pickup, Mustang Mach-E SUV, and E-Transit van, contributed to this total.
In addition to their US sales, Ford has plans for new EV launches in Europe and China. In Europe, the company will introduce an electric version of the popular Puma model, as well as two SUVs based on Volkswagen’s MEB platform. The Explorer nameplate will also make its debut on one of these MEB-based models. These new additions will join the already available Mustang Mach-E, E-Transit, and E-Transit Custom vans in the European market. China, on the other hand, already has the Territory EV, a redesigned version of the Yusheng S330 from Ford’s joint venture partner JMC.
While Ford’s current EV offerings in Australia are limited to the E-Transit and Mustang Mach-E models, the brand plans to introduce the electric Puma to the Australian market this year. The Puma aims to provide a more affordable and accessible EV option for Australian consumers.
Through their commitment to developing a new affordable EV platform and expanding their EV lineup globally, Ford is determined to challenge Tesla’s dominance and the competitive Chinese OEMs. By focusing on cost, efficiency, and adaptability, Ford aims to create a strong presence in the evolving EV market.
- Ford is developing a new EV platform to compete with Tesla and Chinese rivals
- The platform will be cost-effective and adaptable for various vehicle types
- Ford aims to create a large install base for software and services
- Tesla currently dominates the US EV market
- Ford sold 72,608 EVs in the US in 2023, with limited models contributing to the total
- Ford has upcoming EV launches in Europe and China, with plans for the electric Puma in Australia
Ford’s strategic move to develop a smaller and cheaper EV platform demonstrates their determination to compete with Tesla and Chinese rivals. By leveraging their innovative skunkworks team and prioritizing affordability and efficiency, Ford is positioning themselves as a formidable contender in the EV market. With upcoming launches in Europe, China, and Australia, Ford is expanding its EV lineup and aiming to capture a wider audience.