Ford is ready to announce a new strategy for electric mobility, which, according to the brand’s CEO, Jim Farley, will be unveiled on August 11.
Farley described the upcoming announcement as a “Model T moment,” suggesting a potentially transformative direction for the American automaker.
“Our strategy is very simple,” said Farley, emphasizing the focus on profit in specific segments of electric vehicles. The Ford CEO, who has already revealed himself to be an admirer of Chinese technology, having even driven a Xiaomi SU7 that he says is a “fantastic” model, now aims to compete directly with Chinese brands.
“We believe that the only way to effectively compete with Chinese brands worldwide in electric vehicles is to strive to radically design and transform our engineering supply chain, as well as the production process.”
In this way, Ford plans to invest heavily in partnerships, as Jim Farley believes that beyond the complex electric architecture, differentiation in the electric vehicle sector is becoming increasingly difficult, necessitating the establishment of essential strategic alliances.
The CEO of Ford also anticipates a growing regionalization of the global automotive market, driven by local tariff structures and regulations on electrification and emissions. Farley cited recent negotiations that reduced U.S. import tariffs on cars from 25% to 15%, considering this change an “opportunity” for Ford.
Despite facing around USD$ 2 billion in tariff expenses annually, mainly due to imported components, Farley is optimistic and believes that Ford can leverage its status as a major American employer to gain potential political relief and competitive advantages.
We still have to wait to learn about the brand’s new strategy for electric vehicles, which will certainly reveal that traditional automakers need to quickly adapt their operational and production strategies to remain competitive in an increasingly competitive and geographically segmented automotive sector.
