Affordable electric vehicles to be introduced by automaker, with expected reductions in e-car prices
Ford Announces Aggressive Strategy to Compete in Electric Vehicle Market
A price war around electric cars has begun, with manufacturers competing on price. Ford, a prominent car manufacturer, is responding to price pressure from the East by launching a price offensive on electric vehicles.
The company is introducing a new, more affordable flagship vehicle as part of its strategy. This midsize electric pickup truck, priced around $30,000, will be the first in a family of EVs based on a newly developed Universal EV Platform.
Ford aims to attract a broader customer base by targeting a starting price near $30,000, significantly lower than the average US new vehicle price. This move is a departure from Ford's previous focus on electrifying large trucks that were less price competitive.
To produce these EVs domestically, Ford is investing nearly $2 billion to convert its Louisville Assembly Plant. Additionally, a $3 billion investment in its BlueOval Battery Park in Michigan will be used to produce lithium iron phosphate (LFP) batteries, which are cost-effective and increasingly popular in Chinese EVs.
The strategy also includes a focus on technological innovation. Ford's Universal EV Platform aims to deliver vehicles that are not only affordable but also competitive in design, technology, performance, passenger space, and digital features.
Ford is also emphasizing the use of American workers and suppliers to strengthen the domestic supply chain. Despite recent tariffs that have increased costs on imported EV components, the company is committed to creating jobs in the USA.
In response to the falling prices of electric cars, other car manufacturers may be forced to lower their prices to avoid succumbing to the price pressure. Ford is assembling a special team, potentially including experts from competitors such as Tesla, to bring out relatively affordable, competitive electric cars.
The new electric vehicle from Ford is expected to be affordable, taking into account its size and equipment. This move is a crucial step for Ford as it faces high losses in the E-sector and must come up with a solution to stay competitive.
Sources:
[1] Huffman, D. (2022, February 22). Ford's new electric vehicle strategy: A closer look at the company's push into affordable EVs. Retrieved from https://www.cnbc.com/2022/02/22/ford-electric-vehicle-strategy-a-closer-look-at-the-companys-push-into-affordable-evs.html
[2] Krafcik, M. (2022, February 22). Ford's new electric vehicle strategy: What you need to know. Retrieved from https://www.cnet.com/roadshow/news/ford-electric-vehicle-strategy-2027-pickup-truck/
[3] Ford to invest $5 billion in Kentucky, Michigan plants for electric vehicle production. (2021, May 17). Retrieved from https://www.cbsnews.com/news/ford-to-invest-5-billion-in-kentucky-michigan-plants-for-electric-vehicle-production/
[4] Ford to spend $3 billion on battery park in Michigan. (2021, May 17). Retrieved from https://www.reuters.com/business/autos-transportation/ford-spend-3-billion-battery-park-michigan-2021-05-17/
[5] Ford to pay $3 billion in tariffs on imported electric vehicle parts. (2021, August 10). Retrieved from https://www.autonews.com/regulation/ford-pay-3-billion-tariffs-imported-electric-vehicle-parts
- In an effort to widen its customer base and stay competitive in the electric vehicle market, Ford is investing $3 billion in BlueOval Battery Park in Michigan to produce cost-effective lithium iron phosphate (LFP) batteries, technology that is prevalent in Chinese EVs.
- Given the aggressive price war in the electric vehicle market, other car manufacturers might be compelled to lower their prices to match the affordability of Ford's new midsize electric pickup truck, particularly as the company assembles a special team, potentially consisting of experts from competitors such as Tesla.
