Last week, in August, Ford CEO Jim Farley Called a lifelong gasoline head, Announce A $30,000 electric pickup truck It is scheduled to be released in 2027. Farley takes it as the new “T-moment“Breakthrough is designed to reshape the way cars and trucks are assembled. The company hopes the move will help Ford remain a lucrative U.S. automaker despite rising tariffs, increasing demand for electric vehicles, higher labor costs and a political climate of an increasingly electrified enemy.
Ford’s profits have laid the foundation for the huge success of its F-Series trucks for decades. These full-size SUVs and pickups are heavy but profitable. Ford sold 222,459 trucks in the quarter ended June, the highest truck since 2019. However, Ford now promises $5 billion to inflate its most powerful brand equity, and this long-standing dominance and imagery of its burning aspect could turn into the greatest responsibility.
Ford’s electric car ambitions clash with its image
In 2018, Ford canceled its sedans and small cars, a decision that was partly driven by consumer taste shifting (Americans love large SUVs) and partly driven by the company’s own “Build Ford” spell. Today, Ford remains one of the least fuel-efficient pickup trucks on the market: the F-150 Raptor R, which is only 10 miles per gallon in the city and can accommodate 15 miles on the highway.
The perception gap between fuel-consuming, image-driven monster trucks and the green promise of electric vehicles is huge – Ford has been working to shut down. With the launch of Mustang SUVs, the gap is clear in 2020. The launch is flat, too dependent on the legacy of the company’s large trucks and muscle cars, leaving behind Electric car buyers and Ford loyalists are both confused by the representation of the new model.
Politics makes the gap even more complicated. As Bloomberg notes, about two-thirds of full-size truck owners conservatives, Republicans are less enthusiastic about electric cars than Democrats. Ford’s crown jewelry (F series) has become a symbol of overdo and power, so it’s harder to market splinters across the political spectrum.
Ford’s electric car script
Despite the long-lasting popularity of the F-150, sales of its power siblings (F-150 Lightning) have slowed down. Lightning sales fell 26% in the April-June quarter. Mach-E also stumbled upon in the recent quarter, with sales down 20% year-on-year. Ford’s E-E unit lost $1.3 billion a quarter, and the company expects to have nearly $5 billion in EV-related losses this year.
To turn things around, Ford is borrowing money from Tesla’s script. At the Kentucky-based Kentucky plant, the company is adopting a flexible “tree” assembly system that builds components on separate branches before being added to the final assembly. Engineers are also working to reduce the burden on expensive wiring harnesses for electric car manufacturers such as Rivian. Ford is building a new battery plant in Michigan, and its $30,000 truck will be equipped with lithium iron lithium phosphate (LFP) batteries to expand the range while keeping costs down.
Meanwhile, due to their affordability, scope and technology, China’s electric vehicles have become fiercely competitive (currently mainly in overseas markets). The U.S. government has taken positive measures to curb its imports. Even so, Farley himself admitted in the podcast that after spending six months driving the Xiaomi Su7 back and forth from get off work, he thought it was “good” and did not want to give up.
Ultimately, Ford’s battle is not only about Tesla, Rivian or Chinese automakers. It’s about survival. Wall Street responded cautiously to the $30,000 EV announcement. Analysts praised the ambition but questioned whether Ford could scale or maintain the price point quickly enough because tax rates, labor costs and U.S. tax credits fell. Many still believe the stock is overvalued.
In fact, Ford’s move Probably too little, too late. If this is indeed Ford’s new “M Model T” moment, the new electrical pickup must do the historic car that once had: an affordable, reliable and unquestionable Ford. Otherwise, the company’s biggest advantage (its legacy of big trucks) will be the weight that drags it down.
