Inside Ford's decision to double down on electric vehicles

Ford's decision to invest $5 billion in a new family of electric vehicles might seem crazy at this point, given how much the political winds have shifted against EVs since President Trump took office. Widen the lens, however, and Ford's big bet is the only natural choice in the face of existential threats to its business. The big picture: More and more mainstream car buyers can't afford to buy a new Ford, which sells for an average of $56,000.It's not just Ford, of course. The entire industry is facing an affordability crisis.At the same time, Chinese carmakers have figured out how to make inexpensive, high-quality, digitally advanced EVs, and they're quickly taking over the world. It's only a matter of time before those Chinese cars arrive in the U.S.Failure to invest in the face of that global challenge is akin to waving the white flag.Yes, but: Building affordable EVs profitably is a lot harder without consumer tax credits and other EV-friendly policies killed by the Trump administration.Trump's tariff policy has also placed a huge cost burden on American automakers — nearly $10 billion this year alone for General Motors, Ford and Stellantis.At least his environmental policy has given them more time to push high-margin, U.S.-built trucks and SUVs.Threat level: U.S. automakers are at a crossroads, with new technology and new competition from all directions, says Ford CEO Jim Farley. "We saw this coming for years. We knew that the Chinese would be the major player for us globally — companies like BYD, new startups from around the world, Big Tech has their ambition in the auto space. They're all coming for us," he told employees and visitors at Ford's Louisville, Kentucky, assembly plant Monday."Legacy automotive companies, we need a radical approach...But we need to do it and be sustainable and make money, and we need to do it with American workers."Driving the news: Ford's answer is a new electric vehicle platform designed from a clean sheet by mostly outsiders to bring fresh thinking to the problem.""We took inspiration from the Model T – the universal car that changed the world," said Doug Field, Ford's chief EV, digital and design officer, who previously worked at Tesla and Apple."We applied first‑principles engineering, pushing to the limits of physics to make it fun to drive and compete on affordability. Our new zonal electric architecture unlocks capabilities the industry has never seen. This isn't a stripped‑down, old‑school vehicle," Field said.The first model, coming in 2027, will be a versatile medium-sized pickup truck, with room for five passengers, a storage "frunk" (front trunk) and an open pickup bed.Ford envisions multiple body styles sharing the same universal EV platform at price points below $40,000, enabling economies of scale to ensure profitability. The cars will be powered by low-cost, lithium-iron-phosphate batteries produced in Michigan.Zoom in: The effort includes a complete rethinking of how vehicles are assembled — essentially throwing out the traditional assembly line Henry Ford invented — in order to overcome China's advantages, including low-cost labor and control of battery supply chains. "We tore up the moving assembly line concept and designed a better one," Farley told reporters. "Henry Ford would be proud."Instead of a traditional conveyor line, Ford designed an "assembly tree" with three branches for increased efficiency. Large single-piece aluminum castings replace dozens of smaller parts, enabling the front and rear of the vehicle to be assembled separately on different branches.Those modules are then united with the structural battery, which serves as the floor of the vehicle, with seats, consoles and carpeting already installed.The process dramatically improves ergonomics for employees by reducing twisting, reaching and bending, Ford said.Yes, but: New efficiencies mean fewer jobs. When the revamped Louisville plant reopens in 2027, it will employ 2,200 workers, 600 fewer than today. Workers no longer needed will be offered buyouts or move to other nearby factories, Ford said. The bottom line: "There are no guarantees with this project," Farley acknowledged. "We're doing so many new things I can't tell you with 100% certainty that this will all go just right. It is a bet. There is risk."But, says Farley, it's a risk worth taking.

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