Inside Ford’s bold August 11 manufacturing plan

Ford prepares EV reveal on August 11

Following months of preparation, Ford will reveal a major electric vehicle plan on August 11 at its assembly plant in Louisville, Kentucky. CEO Jim Farley confirmed the news during the company’s second-quarter earnings call.

He described it as a “Model T moment” that will shape the future of Ford’s EV strategy. Farley has spent months driving a Xiaomi SU7 EV. These companies gain market share by offering low-cost EVs with high-end features such as air suspension and digital displays.

Chinese EV makers prompt urgent response

Because Chinese EVs offer advanced features at low prices, Farley has traveled to China with a special team to understand how these automakers operate. BYD, for example, sells the Dolphin in Mexico for $25,720. Farley has acknowledged that Chinese EV makers are advancing rapidly with simplified, cost-effective production methods.

Xiaomi uses mega-casting and integrates compact batteries directly into the vehicle structure. These changes reduce parts and assembly steps. Farley’s “skunkworks” team has applied these ideas at a Long Beach, California, facility over the past 18 months.

Ford targets Sub-$30K EV family models

Inspired by these Chinese methods, the Skunkworks group is developing a new EV family, including a small pickup between the Ford Maverick and Ranger and a compact SUV. The aim is to bring prices below $30,000 using low-cost design and production methods similar to Tesla and Chinese brands.

The new models will feature lithium-iron phosphate battery packs, which are cheaper and safer than traditional lithium-ion batteries. These packs will be made at a new Ford battery plant in Marshall, Michigan, and may be offered alongside other powertrain options.

EV affordability needed as sales slow

Because affordability is key to EV success, Ford is moving quickly. In June 2025, Kelley Blue Book reported that the average EV cost was $56,910, about $8,000 more than the average price of all vehicles sold in the U.S. Farley believes affordability is the key to boosting EV sales, which have recently slowed.

Ford aims to cut tens of thousands of dollars in production costs per vehicle. This includes simplifying the manufacturing process and reducing part counts, aligning with what companies like BYD and Xiaomi are doing successfully.

Ford moves away from high-end EVs

This focus on affordability is why Ford is changing course. Ford currently produces three EVs: the Mustang Mach-E, F-150 Lightning, and E-Transit van. The company had been working on a luxury three-row electric SUV priced above $60,000, but has changed direction.

Farley believes investing in a $60,000 to $70,000 crossover is less effective than creating low-cost models. The Skunkworks team’s strategy is to build affordable EVs with valuable features, rather than luxury vehicles with high price tags.

Tesla faces model T-type moment too

Tesla is also at a turning point, and Farley has taken notice. In June 2023’s Fully Charged podcast, Farley said Tesla’s aggressive price cuts remind him of the Model T era. He called it one of Tesla’s “most challenging moments,” citing that price wars can commoditize products and reduce brand value.

Farley added that Tesla’s heavy discounting is like a “sugar high, ” affecting demand elasticity. He said fewer people are buying despite lower prices. Henry Ford faced a similar situation a century ago and was nearly bankrupt within a year of the Model T’s mass production.

Ford and Tesla share competition zones

Because Tesla and Ford face similar industry challenges, Farley has outlined their competitive space. Farley told the Fully Charged podcast that Ford’s key EV competitors are Tesla, BYD, and Geely. He does not consider GM, BMW, Hyundai, or Volkswagen direct rivals in the pure electric space.

He also said Ford wants to avoid building generic, affordable EVs. Instead, the company focuses on segments where it knows the customer well, including pickups, large crossovers, commercial vans, and high-performance models.

Ford shifts toward vertical integration

Farley also discussed changes in how Ford gets its materials to support that strategy. Farley stated in July 2023 that Ford is now vertically integrating its battery supply chain. The company directly purchases raw materials from mines and arranges their processing for battery production.

He emphasized that this shift is critical for controlling costs and reducing reliance on China’s battery supply chain. These efforts are part of Ford’s strategy to create a stronger, self-sufficient EV manufacturing system for its new product family.

Lawler says ICE engines losing relevance

While Ford transforms its EV operations, its leadership has commented on the decline of gas engines. At the June 2025 Bernstein conference, Ford Vice Chair John Lawler said that internal combustion engines no longer define vehicles like they did 30 years ago.

Features such as displacement and torque are less important to buyers today. Lawler believes consumer focus has shifted away from engine specs. While car enthusiasts may still care about performance, most buyers are looking for reliability and low maintenance, which electric vehicles are more likely to provide.

Combustion engine culture still exists

Despite this shift, some automakers are taking the opposite approach. Some automakers are still pushing to keep gas engines alive. Mazda and Toyota are continuing internal combustion development due to high EV costs and uncertain consumer demand.

GM has also shown interest in gas performance. The 2025 Chevrolet Corvette ZR1 uses a twin-turbo V8 producing 1,064 horsepower without electric assistance. Its hybrid version, the ZR1X, offers 1,250 horsepower, surpassing many European hypercars.

Ford eyes engine supply from outside

Ford is also adjusting how it sources combustion engines. Lawler said that Ford may outsource engine production due to rising competition from Chinese automakers. This marks a shift from traditional in-house engine development.

He mentioned Horse Powertrain, a joint venture between Renault and Geely established in 2024. This partnership supplies internal combustion and hybrid systems, serving as a potential model for how Ford could acquire future engine technologies.

Farley’s view on global EV competition

Ford’s global competition strategy reflects these changing dynamics. In July 2023, Farley stated that Ford has been tracking the rise of Chinese EV makers for years. He identified BYD, Geely, and Tesla as the top threats in the electric vehicle sector.

Farley added that Ford must transform its engineering, supply chain, and manufacturing to succeed globally. Competing on price alone is not enough. The company must rethink its entire EV design and production approach to stay relevant.

Tesla and Ford collaborate on charging

While competing with Tesla globally, Ford has also formed alliances. While Ford and Tesla compete in many areas, they have also worked together. Ford adopted Tesla’s charging technology to improve EV access for its customers.

This partnership shows that even competitors may join forces when it benefits their customers. Both companies are navigating the EV transition by focusing on infrastructure and affordability, though their business models differ.

Electric vehicles seen as appliances

The nature of EVs has also changed how people view cars. In June 2025, John Lawler noted that EVs are often compared to appliances. Many people see them as lacking emotion or soul compared to traditional cars with gas engines.

However, even internal combustion vehicles have become more similar in design. Today’s market is filled with similar-looking SUVs. As EV adoption grows, design innovation and personalization may help electric cars stand out again.

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Ford faces quality and trade challenges

As Ford works on innovation, challenges remain. Ford had more recalls in the first half of 2025 than any automaker recorded in a full year. This raises concerns about product quality as the company focuses on affordable EVs.

New trade policies could also affect costs. Donald Trump has proposed a 50 percent tariff on imported copper, a key EV material. This could raise production expenses for Ford and slow down its battery manufacturing efforts.

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What will Ford’s “Model T moment” look like in 2025? Drop your thoughts in the comments below

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This slideshow was made with AI assistance and human editing.