Ford‘s ‘Skunkworks’ EV Project Includes $25,000 Truck, Compact SUV: Report
American carmakers have been apprehensive about the prospect of budget-friendly Chinese Electric vehicles (EVs) entering the U.S. market through Mexico. However, they are now taking action to combat this looming threat by introducing countermeasures against the potential influx of Chinese EVs.
Ford made headlines last month with the revelation of an internal team, known as a “skunkworks,” working on a cost-effective electric vehicle platform. Recent reports from Bloomberg shed light on this initiative, disclosing that this project will give rise to three new electric vehicles: a compact SUV, a small truck, and an EV tailored for ride-hail services.
Ramped up efforts to produce affordable EVs in the U.S. have gained momentum. While the fear of Chinese EVs dominating the market persists, Ford is stepping up its game to bring forth truly American-made low-cost EVs that can compete with foreign counterparts.
According to Bloomberg’s report today, Ford’s low-cost EV platform team, comprised of fewer than 100 members, is devising a new electric platform to support a range of vehicles. The first model is anticipated to debut in late 2026, priced around $25,000, aligning with Tesla‘s project for a low-cost EV.
In a bid to boost efficiency and reduce costs, Ford plans to employ lithium-iron-phosphate (LFP) cells to power their upcoming small EV. Alongside this, the company is exploring other battery technologies to minimize expenses.
The decision to create a diverse lineup of electric vehicles with one low-cost platform is strategic. It aligns with industry trends that favor versatility and scalability in the EV market. Ford’s move comes in response to changing regulations, such as the shift towards EVs in rideshare services to meet emission goals.
Contrastingly, Ford’s previous strategy of prioritizing high-profit margin trucks and SUVs has evolved with the growing prominence of EVs. As Chinese automakers like BYD eye Mexico as a potential entry point for exporting cheap EVs into North America, Ford is gearing up to compete against them and Tesla in the EV space.
Amidst this backdrop, questions surrounding pricing, battery supply chain dynamics, and market competition loom large. Ford’s foray into affordable small EVs marks the beginning of a competitive landscape that will likely shape the industry’s trajectory in the coming years.