The American automaker announced a $5 billion investment into its EV plants, a new electric vehicle platform and an affordable electric truck arriving in 2027.
Less than two weeks after announcing its electric vehicle unit lost $1.3 billion during the second quarter and expected to lose billions more this year, Ford Motor Co. now plans to invest around $5 billion to reset its EV program with more affordable vehicles produced more efficiently, at lower cost, the automaker announced Monday.
Ford CEO Jim Farley unveiled plans for a midsize EV truck starting at $30,000. Farley said the automaker is making an additional $2 billion investment in EV production.
Affordability is a top concern among EV shoppers, auto executives have said, and the global competition for delivering cheaper electric models is heating up.
Ford, which once had a lead on other established automakers, said on Monday that it will use new materials and methods to lower the costs of electric vehicles.
A $2 billion investment in a Louisville plant supports efficient manufacturing as employment is projected to fall by 600.
F delays its next-gen EV truck and van to 2028, betting that smaller, cheaper models will drive long-term profitability.
As a result of the changing EV landscape under President Donald Trump, U.S. automakers are evaluating their product lineups and calculating the dollar impacts. Tesla CEO Elon Musk said during the automaker's latest earnings call that the company is in a "weird transition period" as it deals with losing EV incentives in the U.S.
Ford (NYSE: F) has recalled more vehicles in the first half of the year than it has produced, with warranty costs in the billions, raising significant concerns over quality control and earnings impact.
Jaguar Land Rover (JLR) has named PB Balaji as its next chief executive, effective from November 2025, following the retirement of Adrian Mardell after more than three decades at the company. Mardell, who has served as CEO since 2023, will step down after 35 years at JLR.
Ford beat Q2'25 earnings and revenue estimates, driven by strong ICE vehicle demand and strong growth in the Ford Pro commercial segment. Ford managed to significantly enhance the EBIT profitability of its Ford Pro segment, with margins gaining 3.7 PP Q/Q. The automaker's new FY 2025 guidance, despite lower EBIT, helps remove negative sentiment by clarifying tariff impacts and supporting its value proposition.
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