The Ford boss revealed that a small team has been working outside the company for two years to create the new generation of electric cars. Low-cost models which should revive the American manufacturer.
“ We bet on silence two years ago » launched Ford boss Jim Farley during the investor conference on February 6. While many manufacturers express themselves quite freely on innovations and the way in which they will integrate them into their product plan, Ford has in fact been particularly discreet about the brand’s projects. A position which could worry investors who were navigating the developments of the electric car at the American giant.
Jim Farley wanted to hide his game from his main competitors, it apparently succeeded. Even with the official announcement on February 6, the project remains vague and no official calendar really allows us to know when this new generation of vehicle will see the light of day.
What do these next-generation vehicles have in store?
Ford boss Jim Farley ultimately only teased what the “gen 2” vehicles will be, as they called them during the conference. This remains particularly vague, but intriguing enough to capture the attention of investors and the media.
Ford will set aside large electric vehicles (pickups and vans) to reserve them only for specific markets. The brand will focus on creating smaller and more affordable electric cars: “ These products will have breakthrough efficiency compared to our Generation 1 products, and they will feature innovations that customers will be happy to pay for. »
“ We’ve built a team of super-talented techies to create a low-cost EV platform » said Jim Farley with pride. The idea was that this small team of electric car mercenaries would be made up of the best engineers in the world. This team thus formed, it worked independently of the rest of the Ford teams dedicated to the electric car. A sort of independent startup which should revolutionize the way vehicles are designed at Ford. Far from the habits of historic manufacturers who rely on several decades of automobile developments and have difficulty breaking away from classic patterns.
Ford has in fact chosen to tackle the manufacturing of electric cars by following the principles mastered by Tesla and Chinese brands to optimize manufacturing costs. From a blank page, the team had to create a new flexible platform that will be deployed on several types of vehicles and focused on the software part. Jim Farley has learned the lesson taught by the first generation of electric models: “ All of our EV teams are ruthlessly focused on the cost and efficiency of our EV products because the ultimate competition will be affordable Tesla and Chinese OEMs. »
A first generation of unprofitable electric vehicles
Ford’s management teams recognize that mistakes were made to launch the brand’s first electric vehicles. The financial director admits it bluntly: “ We brought them to market very quickly and they are not cost-optimized “. Ford is paying a high price for this with revenues collapsing along with demand and increased price competition.
Ford also suffered from supply difficulties to meet demand. This is what should change in 2024: a full year, with production capacities that can keep up, and a new model, the Explorer, planned for the second half of the year in Europe.
To improve profitability, the Ford Mustang Mach-e and the F-150 Lightening have been improved since their launch to gradually reduce the number of parts required and therefore impact production costs and margins. These first generation electric vehicles allowed Ford to realize the challenges that this new technology would bring to the traditional automobile industry.
The second generation will be launched when it is profitable
Ford’s teams learned from their mistakes. They have decided that the second generation (“gen 2”) will only be launched “ only when it can be profitable and offer the type of return we want. »
Through this, the historic manufacturer wants to reassure investors that its branch dedicated to electric mobility will be an activity “ autonomous and profitable “. Ford is the first manufacturer to have chosen to divide its operations into 3 distinct subsidiaries, with the historical activity on one side, the developments of electric vehicles on the other, and in the middle the branch dedicated to professionals. Renault has since adopted a fairly similar strategy with the creation of Ampère to develop the electrical and software branch.
The fact remains that the American manufacturer’s timetable is a little vague, and the head of the electrical branch did not wish to confirm the arrival of the models in 2026. Let’s hope that Ford does not miss an important milestone by wanting too much take your time to make the activity profitable. The other manufacturers are also moving forward particularly quickly, particularly in China. A country which also greatly impressed Jim Farley and his financial director, enough for them to let out a “holy cow!” » describing what they observed there.
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