Ford’s radical new EV plan will include Australia

Australian buyers seem certain to be offered a range of new Ford EVs as a result of the blue oval’s massive tear-up and redesign of its battery electric vehicle strategy announced overnight.

But which of these new generation affordable ‘Universal’ Ford EVs come to Australia, when they come here, where they come from and what they cost is an unknown.

Certainly, Ford Australia isn’t adding detail to the announcements in Louisville, Kentucky made by a slew of Ford executives including global president and CEO Jim Farley.

"The exciting new Ford Universal Electric Vehicle Platform enables a family of affordable vehicles to be produced at scale for customers that are fun to drive and digitally advanced,” a Ford Australia statement noted.

“It’s too early to share specifics on export markets today."

While the manufacturing and vehicle plans announced overnight centred on building a mid-size pick-up truck at Ford’s Louisville plant from 2027 expected to be called Ranchero, there are at least eight models forecast to be produced from the new Universal platform using the new Ford Universal Production System.

If teaser graphics accompanying the launch are anything to go by, the new EV platform will also underpin two- and three-row SUVs, a commercial van, a people-mover and traditional passenger cars.

In Australia, with the NVES CO2 reduction scheme already biting into Ford’s line-up and pricing, many of these new EV models will be wanted.

Currently Ford only sells the Mustang Mach-E and E-Transit and E-Transit Custom EVs in Australia and has a stronger focus on PHEVs such as the new plug-in Ranger.

Another question is whether the massive Universal program offers opportunities or poses a threat to Ford’s substantial Australian design and engineering capacity, which is currently the homeroom for the T6 ladder frame product family led by the top-selling Ranger ute.

The Louisville announcement was Trumpian in its celebration of America-first manufacturing: “Our competitors build their affordable vehicles in South Korea and Japan and import them, but not us at Ford,” Farley declared.

But for all that patriotism, global sales of this new EV generation are a major goal. And logically, Louisville won’t be the sole production source for a family of vehicles expected to sell in huge numbers globally.

“The automotive industry in America is at a crossroads. We’re at a crossroads about new technology and new competition coming from everywhere,” said Farley.

“We saw this coming for years, we knew the Chinese would be the major player for us globally. Companies like BYD, new start-ups from around the world, big technology has their ambition in the auto space.

“They are all coming for us legacy auto makers.”

The Ford Universal EV Platform is designed to dramatically reduce the cost of electric vehicle engineering.

Ford says the new body reduces parts and welds by two-thirds versus a typical pick-up, with 50 per cent fewer fasteners.

The wiring harness in the new midsize truck will be more than 1.3km shorter and 10kg lighter than the one used in first-generation Ford EVs.

Ford also says the Lithium iron phosphate prismatic batteries will enable space and weight savings and cost reduction.

In its official statement Ford said its aim was “to bring a new family of affordable, high-quality electric vehicles within reach for millions around the world”.

But CEO Jim Farley was stark about just how high the stakes are for Ford.

It is spending $2 billion ($3.068 billion) to refurbish Louisville and another $3 billion ($4.6 billion) on America’s first Lithium iron phosphate prismatic battery cell manufacturing plant in Michigan.

“There are no guarantees with this project, we are doing so many new things I can’t tell you with 100 per cent certainty that this will all go just right,” he said.

“This is a bet, there is risk. The automotive industry has a graveyard littered with affordable vehicles that were launched in our country with all good intentions.

“And they fizzled out with idle plants, laid off workers and red ink.

“At Ford we set out three years ago to break that cycle. No more compliance cars, no more loss leaders that require a big cheque from the company to make.

“We’re talking about a vehicle that can sustain itself and have strong profits.”

The new strategy began three years ago with the creation of a small skunkworks team in California to chart a new course for Ford’s EV future as pressures on its viability increased.

“Compared to a typical generation one electric vehicle we can get the same range with a third less battery,” explained Doug Field, Ford’s chief EV, digital and design officer.

“That’s the kind of ingenuity we need to compete with the Chinese.

“Are we going to compete on labour to make batteries? No. But if we use our brains … we can compete.”

Field, who was formerly one of Elon Musk’s key executives at Tesla and worked on the Apple iCar project, promised the ongoing costs of ownership of the new Ford EV would be cheaper than “a three-year-old Tesla Model Y”.

“And they’re pretty cheap,” Field said.

The platform’s cobalt-free and nickel-free LFP battery pack is a structural sub-assembly that also serves as the vehicle’s floor and is assembled with seats, consoles and carpeting.

The new production system abandons the traditional assembly line and instead is an ‘assembly tree’.

Large single-piece Tesla-like aluminium uni-castings replace dozens of smaller parts, enabling the front and rear of the vehicle to be assembled separately.

The front and rear are then combined with the structural battery to form the vehicle.

The new system results in 40 per cent fewer workstations dock-to-dock in the plant and 15 per cent faster assembly time.

Ford also says the new system dramatically improves ergonomics for assembly line workers.

As Ford’s CEO explains, legacy car makers are facing an existential threat from China and this huge strategic shift is a direct response from Ford.

Time will tell if it was the right move.

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