Ford bets 5 billion on new EV push

Ford unveils a sweeping EV investment plan that hinges on a new manufacturing approach and affordable models, while analysts warn the move could backfire if demand falters.

Ford bets 5 billion on new EV push despite looming risks

Ford unveiled a $5 billion plan to overhaul how it builds electric vehicles, including $2 billion to convert the Louisville, Kentucky plant into an EV assembly site. The company says a universal EV platform will lower costs and simplify production, with a goal of a $30,000 four‑door pickup arriving in 2027 and a larger model in 2028.

Analysts caution that Ford has logged about $12 billion in losses in its Model E division since 2023 and will need a truly compelling product with longer range and cheaper batteries to win buyers. GM has gained EV share in the meantime, helped by demand that benefited from tax credits, while overall EV demand remains uneven as the market shifts.

Industry observers note Ford is moving from a single modernized assembly line to a three‑pronged approach that promises efficiency but requires tight coordination. If the plan falters, the consequences for the brand could be severe; if it succeeds, it may redefine Ford’s production model and its path back to profitability.

The shift to a three‑pronged assembly system marks a direct break from Henry Ford’s original assembly line mindset and signals a gamble on manufacturing innovation as much as on product. The strategy seeks to squash unit costs by reusing parts and streamlining steps, but it will depend on flawless execution across three specialized lines converging into one final product.

Yet the warded optimism rests on a fragile balance: consumer demand for affordable EVs, battery costs, and the ability to deliver a product with enough range to satisfy buyers. Without a standout offering, billions spent could become a drag on the brand rather than a turning point.

Highlights

The next results will test whether Ford can turn a bold plan into durable growth.