The Fourth Industrial Revolution (4IR) is highlighted by innovation and Ford’s aim to produce Electric Vehicles (EVs) is part of the advancement that comes with the 4IR. For years China has been the forerunner when it comes to electric vehicles, but others are trying to put on a competitive edge in the production of EVs. One of America’s top motor manufacturers, Ford, believes it has what it takes to outshine China in the EV production area.
Ford: The history of this manufacturer
The motor Company has a rich history of successful and effective car production. The company has a rich history when it comes to groundbreaking innovations. For example, the iconic product of the Model T, Mustang, and F-150 proves the company’s ability to produce groundbreaking vehicles.
According to Jim Farley, the CEO of Ford Moto Co., the automaker is described as being in a race with the Chinese manufacturers. This competition’s main aim is for the manufacturer to produce electric vehicles that are more affordable, but also profitable. The key to winning this competition is allegedly to downsize the vehicles as well as the price of it, as stated by Farley.
However, it may sound like an obvious method to beat one’s opponent, but it is also counterintuitive. This is especially the case because the company’s first full house electric vehicle recently was the F-150 Lightning pickup. Additionally, the F-Series gasoline and hybrid pickups was classified as the company’s bread-and-butter moneymakers.
The Plan to beat China in EV production
As stated by Farley, Ford’s positioning is in such a state that it is at a good advantage to compete against the Chinese EV giants, especially against BYD. BYD is popular for high-quality electric vehicles that are affordable. These vehicles are currently barred from the United States.
He further alluded to the fact that the company’s battery strategy is more fit than the Chinese manufacturers. He added at the Wall Street Conference that they understand BYDs through the teardowns and the future knowledge that came from the supply chain.
The advantage over Chinese manufacturers
The CEO stated that Ford is in a good position to restructure the company’s electric vehicle investment strategy. This is the manufacturer’s position, even after the automaker lost around $5.1 billion on its electric vehicles in 2024. Also, during 2022 the manufacturer established Skunkworks. This is where the CEO stated that his badge does not work. He implied that the top-secret development is occurring there, at this new establishment.
He further added that the company hired a completely new team in California – which includes many competitive all electric vehicles brands. Farley claimed that Ford developed a platform that is fully equipped and able to compete against companies like BYD.
Is it possible for a company like Ford?
According to Sam Fiorani, vice president of Global Vehicle Forecasting at AutoForecast Solutions LLC, indicated that the United States automakers face an overall challenge. This obstacle is the ability to catch up to the Chinese automakers, who has the support from their government – a government that does not only encourage the advancement of technology, but one that mandates it.
Additionally, the automakers of China could head start will snowball because they can add money back into research and development. As stated by Fiorani, this is to ensure the development of better batteries, which will continuously keep them ahead of the profit-focused automakers in various countries like: Europe, North America, Japan, and South Korea.
He further added that this lead will not diminish, unless there is a severe shake-up and change among the Chinese automakers. It is stated that the United States became too dependent on big trucks and utilities that it would be difficult to commit to EVs, that is generally smaller and less expensive. Therefore, it would be difficult for American companies like Ford to be completely focused on EVs.