Ford unveils automated process for cheaper EVs, targeting $30K pickup
Ford is embarking on a dramatic overhaul of its electric vehicle strategy, unveiling a new “universal” platform and manufacturing process designed to drastically cut costs and propel the automaker toward profitability in the fiercely competitive EV market. The cornerstone of this ambitious plan is a low-cost family of electric vehicles, beginning with a four-door, midsized pickup truck slated for a 2027 debut with a target price of $30,000. This move, which Ford is touting as its “Model T moment,” comes at a critical juncture, as the company anticipates losing over $5.5 billion on its EV and software operations this year alone.
The new vehicle platform is engineered for scalability and adaptability, capable of underpinning a diverse range of models including trucks, vans, and SUVs. These next-generation EVs will be software-defined, meaning their operating systems can evolve and improve over time through convenient over-the-air updates. A key element in cost reduction lies in the adoption of lithium iron phosphate (LFP) battery chemistry. These LFP cells are not only more durable and faster-charging but also significantly more affordable than the nickel cobalt manganese (NCM) cells currently used in Ford’s EV lineup. According to S&P Global, LFP cells were priced over 20 percent lower than NCM cells in 2024, averaging just under $60 per kilowatt-hour compared to $100 per kilowatt-hour for NCM. These prismatic LFP cells will be flat-packed into rigid cases, forming a “structural sub-assembly” that doubles as the vehicle’s floor, contributing to a lower center of gravity for improved handling and maximizing interior space. Ford promises the new midsized truck will offer more passenger room than a Toyota RAV4 and a bed large enough for a surfboard without needing a roof rack.
Beyond the vehicle architecture, Ford is revolutionizing its production methods. Moving away from the traditional linear assembly line popularized by the original Model T over a century ago, the company is adopting an “assembly tree” concept. This innovative approach involves multiple sub-assembly lines running simultaneously before converging. This method allows for the integration of large single-piece aluminum unicastings, replacing dozens of smaller parts and enabling the separate assembly of the front and rear sections of the vehicle. Overall, the new universal platform boasts a 20 percent reduction in parts, 25 percent fewer fasteners, and 40 percent fewer workstations, translating to a roughly 15 percent faster assembly time compared to conventional methods. Ford anticipates these efficiencies will result in a lower five-year cost of ownership for its new low-cost EVs compared to even a three-year-old Tesla Model Y. The new midsized truck, for instance, will feature a much simpler electrical network, with its wiring harness an estimated 4,000 feet shorter and 10 kilograms lighter than that of Ford’s first-generation Mustang Mach-E.
This ambitious undertaking is the brainchild of Ford’s three-year-old Silicon Valley-based “skunkworks” project, an empowered team tasked with rethinking automotive manufacturing from the ground up. Doug Field, Ford’s chief EV, digital, and design officer, emphasized the clean-sheet approach, stating the goal was to “fight complexity and do something truly new.” The team, led by Alan Clarke, a 12-year veteran of Tesla, and drawing engineers from the recently acquired energy management startup Auto Motive Power (AMP), has also focused on improving worker ergonomics. The new process aims to reduce strenuous movements like twisting, reaching, and bending, partly through increased automation and a “kit” system that delivers all necessary parts directly to workstations, significantly cutting down on physical strain.
Despite the promise of affordability, Ford assures consumers these new EVs will be “fun to drive,” targeting a 0-60 mph acceleration time of approximately 4.5 seconds, comparable to a four-cylinder Mustang EcoBoost. While not specifying range, the new platform will feature a 400-volt architecture.
Ford is backing this transformation with significant investment, committing $2 billion in new funds to its Louisville, Kentucky assembly plant, where the new midsized truck will be produced. This is part of a broader $5 billion investment aimed at creating or securing 4,000 jobs, including at its BlueOval Battery Park in Michigan. However, the increased automation and streamlined processes will lead to a reduction in hourly workers at the Louisville plant, from 2,800 to 2,200. Ford states it does not anticipate layoffs, with workers potentially transferring to other facilities or accepting buyout offers.
The pressure to succeed is immense. Ford has recently scaled back some of its EV ambitions, delaying $12 billion in investments and pushing back plans for a full-sized electric truck and next-gen electric van. The company faces stiff competition not only from established players like Tesla and GM but also from rapidly emerging Chinese automakers such as BYD. Furthermore, external factors, including potential rollbacks of EV tax credits and existing tariffs, could add further financial strain, making Ford’s “Model T moment” an absolute necessity for its electric future.