Analysts warn that Ford’s reinvestment in electric vehicles has the potential to make new lives shine into the division from past failed efforts or become a death knell for American car brands.
The auto company announced a $5 billion plan on Monday to invest in how it builds electric vehicles, including putting $2 billion into Change its Louisville, Kentucky plant– Gasoline cars that have been produced for seventy years – in electric vehicle assembly plants. Ford will also recreate its production process to make its electric car more affordable, targeting a mid-sized four-door pickup truck with a starting price of $30,000. The company said the truck will be purchased by 2027 and will be available in larger models starting in 2028.
Ford CEO Jim Farley said the basis for Ford’s new “GM-EV platform” is that Ford CEO Jim Farley said its new “GM-EV platform” can produce higher quality cars.
“We tore up the mobile assembly line you see here today and we came up with a whole new concept,” Farley said Monday at the company’s Louisville plant. “This is the most fundamental redesign of how we build cars since the model.”
However, analysts were cautiously exposed to Farley’s lofty EV goals, warning Ford would have to deliver on its promises to get more than billions of dollars in losses from its “Model E” EV division. It must not only compete with the growing United States, but also with the attention of the ruthless consumers of electric vehicles.
Morningstar stock strategist David Whiston told wealth. “That’s why you need great products, high range, battery costs and vehicle manufacturing technology.”
“The challenge is, do you have a great product?” he added. “It’s hard to be excited about a vehicle you can’t see.”
Ford did not respond immediately wealthMake a request for comment.
Ford’s Model E Challenge
Ford has lost $12 billion from the division since early 2023. Including US$2.2 billion In the first two quarters of this year. According to Wheatston’s model, the company is expected to lose $4 billion from its model division by the end of the year.
In 2021, Ford announced allegations about the future of electricity, including plans to overhaul its European operations and Promising almost completely electric By the end of this decade, it had received 50% of total electric vehicle sales in 2030. The company launched the Mustang phone and the F-150 Lightning with its initial success, but with the aging of the vehicle and the cuts by Ford, there were no new models, no new models, but Sales slow down.
Meanwhile, the US rival General Motors Capital exploits Ford’s misfortune, last quarter a EV sales grew 111%insert yourself in the back Tesla As the second place in the U.S. electric vehicle market.
GM’s sales are helped An imminent expiry Wheston said demand for electric vehicles has been strengthened in the U.S. $7,500 EV tax credit, although demand for vehicles may decrease after the end of September tax credit. Still, he calculated that, except for Tesla, overall EV sales rose 22% year-on-year until July 2025. modern The launch of new models is full of hope for future electric vehicles.
Updated Henry Ford’s Vision
Ford’s answer to past manufacturing dilemmas is a three-pronged “assembly tree” rather than its single-array assembly line Modernized by the founder of the same name of the company. Roger Atkins, founder of the EV Consultancy electric vehicle outlook, said this new manufacturing method – through these three specialized manufacturing lines will eventually come together into one – “arguably, arguably the first and only departure of Henry Ford’s initial vision.” With a successful renewal of manufacturing plans, Ford can make good commitments from a failed commitment five years ago, albeit at a high risk.
“The progress of EVs is exponential, so a strategy five years ago might be disappointing to be completely different in today’s global environment,” Atkins told wealth In the email. “If it does fail, it could be the end of the brand.”
Farley says the company is working to break its cycle Met in the past “Idle plants, layoffs and red ink”. He is well aware of the dangers associated with putting more money into Model E, and so far, has had very little income.
“We’ve done a lot of new things and I can’t tell you 100% sure that everything will be right,” he said.
