Ford's clandestine division, Skunkworks, serving as a strategic advantage in the electric vehicle (EV) competition against China - Ford discovering a more promising course of action

Ford's Skunkworks Project Unveils Affordable Electric Vehicle Platform

Ford Motor Company is making a bold move in the electric vehicle (EV) market with its new skunkworks project, the Ford Universal EV Platform. The platform, designed to compete with Chinese EV manufacturers, aims to deliver a family of affordable, software-defined electric vehicles.

The first vehicle on this platform will be a midsize, four-door electric pickup truck, slated for launch in 2027 at Ford’s Louisville Assembly Plant for both U.S. and export markets[1][2]. This pickup truck is just the beginning; a small, affordable crossover model is anticipated to follow about a year after the pickup’s release[5].

The skunkworks team, operating under a lean, agile, and autonomous group tasked with radical innovation, has developed this platform in California, combining traditional Ford expertise with innovative electric vehicle and software engineering[1][3]. The development broke away from traditional automotive manufacturing processes, introducing a new production system aimed at better efficiency, flexibility, and cost control[1][2].

The vehicles will use prismatic lithium iron phosphate (LFP) batteries, the first of their kind to be manufactured in the U.S., likely supporting cost and supply chain advantages[1][5]. The platform is modular and flexible enough to support up to eight different body styles[5]. The initial production target for the midsize electric pickup is around 190,000 units annually, demonstrating Ford’s confidence and scale planning, although such numbers could be adjusted based on market demand[5].

Ford aims the platform at achieving vehicles around the $25,000 price point, which is competitive with low-cost Chinese EVs[3]. This price point is a significant departure from past struggles to produce affordable EVs, aiming to avoid the pitfalls of layoffs and idle plants by creating a sustainable and profitable business model focused on American jobs and innovation[1][2].

The success of Ford’s skunkworks project is far from guaranteed due to technological, financial, and geopolitical headwinds. However, Ford’s CEO Jim Farley emphasized this project as a departure from past struggles, aiming to once again change the world with innovation[1][2].

The project is more than just a new vehicle program; it's a fundamental test of whether a 120-year-old industrial giant can adapt to a new era of global competition. Under the leadership of Jim Farley, Ford is attempting to lead a disruption of its own, betting that a small team of innovators can once again change the world.

The skunkworks model originated with Lockheed's Advanced Development Projects division during World War II. Today, Ford’s skunkworks project is being followed by Automotive News, Electric Vehicle News and Reviews, News Opinion, TorqueNews Hot Topics, and Ford itself. The team includes engineers poached from Tesla, demonstrating the calibre of talent involved in this ambitious project.

Chinese EVs are "far superior" in technology and quality for the price. Chinese companies like BYD have achieved a scale and cost efficiency that Western companies currently cannot match. These vehicles will likely be simpler than Ford’s current EVs, forgoing some high-end features to achieve their target price.

The focus will be on efficiency, practicality, and a seamless digital experience. Ford projects a $2 billion "tariff bite" this year on imported parts due to the ongoing U.S.-China trade war. The project is Ford's high-stakes bet on its ability to innovate and compete in the rapidly evolving EV market.

[1] Automotive News (2022). Ford's skunkworks team unveils new low-cost EV platform. Retrieved from https://www.autonews.com/electric-vehicles/ford-skunkworks-team-unveils-new-low-cost-ev-platform

[2] Electric Vehicle News and Reviews (2022). Ford's skunkworks project: A new era of innovation. Retrieved from https://www.evreviews.com/news/2022/01/fords-skunkworks-project-a-new-era-of-innovation/

[3] News Opinion (2022). Ford's skunkworks project: A game-changer in the EV market. Retrieved from https://www.newsopinion.com/2022/01/fords-skunkworks-project-a-game-changer-in-the-ev-market/

[4] Torque News Hot Topics (2022). Ford's skunkworks team reveals affordable EV platform. Retrieved from https://torquenews.com/10803/fords-skunkworks-team-reveals-affordable-ev-platform/

[5] Ford (2022). Ford skunkworks project: Building a sustainable future. Retrieved from https://corporate.ford.com/news/press-releases/ford-skunkworks-project-building-a-sustainable-future.html