Ford has postponed plans for a three-row electric SUV to prioritize the development of a more affordable electric vehicle (EV) priced at around $25,000. This strategic shift is driven by the perceived threat posed by Chinese automakers, particularly BYD, and aims to address the growing demand for affordable electric transportation options.
According to a report by Bloomberg, the development of the affordable EV is led by a small team of fewer than 100 individuals based in Irvine, California. Alan Clarke, known for his prior engineering leadership on Tesla’s Model Y, is spearheading this initiative. The team’s primary focus is on constructing a platform utilizing a lithium iron phosphate (LFP) battery, which could potentially accommodate small cars, crossovers, and small pickup trucks.
Ford aims to introduce the small EV by the end of 2026, with a focus on ensuring profitability within the first year of production. Jim Farley, Ford’s CEO, emphasized the company’s commitment to cost efficiency, stating that their EV teams are “ruthlessly focused on cost and efficiency,” with Tesla and Chinese automakers as their “ultimate competition.”
The decision to prioritize the affordable EV reflects a broader trend within the auto industry, with companies preparing for the potential entry of Chinese brands into the U.S. market. The BYD Seagull, priced at just $9,698, offers features such as seating for four, a rotating central infotainment system, and 190 miles of range, underscoring the competitive pressure facing traditional automakers.
