Ford Motor Company is preparing to shake up the electric vehicle (EV) market with a midsize electric pickup truck, set to launch in 2027. CEO Jim Farley shared Ford’s plans to make this new EV affordable while hitting cost targets.
The midsize pickup, rumored to be similar to the Ranger, aims to rival Chinese EVs on price, providing a cost-effective option in a growing segment.
| Category | Ford Midsize Electric Pickup (2027) | Ford Model e (Q3 2024) | Ford F-150 Lightning | Competitors (China EVs) |
|---|---|---|---|---|
| Estimated Launch Price | ~$25,000 | N/A | ~$56,648 (average EV price in 2023) | Starting ~$25,000 |
| Launch Year | 2027 | N/A | Paused until 2025 | 2024 |
| Battery Type | Lithium-Iron Phosphate (LFP) | N/A | Lithium-Ion | Primarily LFP |
| Profitability Goal | Within 12 months of launch | Loss of $1.2B (Q3 2024) | Aiming for breakeven with resumed production | Profitable or breakeven |
| Manufacturing Strategy | Unit casting, simplified components | Cost improvements ongoing | Temporarily halted to adjust to demand | Cost-efficient gigacasting |
| Estimated Production Location | North America or Mexico | N/A | Rouge Electric Vehicle Plant, Michigan | China and Mexico |
| Ford Blue Division Profit (Q3) | N/A | $1.6 billion | N/A | N/A |
| Ford Pro Division Profit (Q3) | N/A | $1.8 billion | N/A | N/A |
A New Strategy for Affordable EVs
In early 2024, Ford announced a strategic shift. Instead of developing large electric SUVs, the company decided to focus on smaller, more affordable EVs, including the midsize electric pickup. Farley explained that a dedicated "skunkworks" team in California has been working on a low-cost platform for two years.
This platform aims to create EVs starting around $25,000, affordable enough to compete with budget-friendly options from Tesla and Chinese automakers.
Ford’s goal is for these new EVs to be profitable within the first year of production. The platform will support not only the pickup but also a compact SUV and a vehicle designed for ride-hailing services.
Keeping Costs Low with Simplified Design
To achieve affordability, Ford took a new approach by simplifying the design. The team streamlined the vehicle’s components, reducing the number of parts, which makes production easier and cheaper. By verifying designs earlier and working with diverse suppliers, Ford expects to control costs effectively.
This strategy is also helping Ford secure lower-cost materials, such as lithium-iron phosphate (LFP) batteries, widely used by Chinese manufacturers. These batteries are expected to keep costs competitive.
image: Google-images
Ford's Financial Focus: Meeting Targets While Cutting Costs
While Ford's EV division, Ford Model e, reported a loss of $1.2 billion in the third quarter, the company remains optimistic. Farley believes the cost-reduction strategies in the new platform will improve profitability for future EVs, starting with the midsize pickup.
The pickup, along with the new platform, aims to meet the price points of Chinese EVs produced in Mexico. By using a unit casting strategy that reduces the number of stamping parts, Ford expects to lower manufacturing costs. This approach aligns with global trends, as competitors also explore "gigacasting" to simplify production.
Ford’s Production Shift and the Future of the F-150 Lightning
Ford recently announced a temporary pause in the production of its F-150 Lightning electric pickup truck, due to waning demand.
The company plans to resume production in early 2025 but is adjusting its mix of EVs to focus more on hybrid models and the upcoming, more affordable EV lineup.
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As Ford pivots to make EVs more affordable, it continues to focus on profitability. With the midsize pickup and other low-cost EVs on the way, Ford hopes to balance the growing EV market’s demands with financial performance. This new generation of EVs reflects Ford’s commitment to offering accessible, reliable, and budget-friendly electric options.