Detroit. Longtime readers of this website are quite familiar with my columns about the lack of affordability in the car business, because I’ve been commenting on this subject for several years now. The fact that the average transaction price is hovering between $48,000 - $50,000 right now is not only alarming, it’s simply not sustainable. Combine this with the fact that too many of the “show pony” EVs are grossly overpriced at 100k or more, and you have a recipe for disaster.
Ford had a winning combo with its Maverick Hybrid small pickup, but the Orange Dictator’s tariffs are laying waste to that business case, while dramatically increasing prices throughout the industry. In fact, the aforementioned tariffs are going to decimate vast swaths of this business and add to the crushing prices consumers have to pay even further. The bottom line? The outlook for the end of the year and the first quarter of next year when the tariffs take hold is nothing short of a giant bowl of Not Good.
Into this current state of affairs in this industry comes Jim “I’m a genius, just ask me” Farley, the Ford CEO who has been on a mission for the last 36 months to study every facet of the Chinese automobile industry. He has been exhorting his troops to break down the secrets of the Chinese industry’s seemingly endless ability to manufacture and deliver affordable EVs, with more advanced technology to boot. And today (Monday, August 11), Farley unveiled the fruits of Ford’s research and advanced development.
Dubbed the “Ford Universal EV Platform,” Farley tried to muster his best evangelical preacher persona in his speech at the Louisville Assembly plant (and failed miserably – here’s a clue, don’t clap for your own shit), basically saying that this new midsize pickup – closer to the Maverick in size - will be the greatest thing since sliced bread. It will offer room for five, a frunk, it will be faster than a Mustang GT (allegedly), and have “great” range all for a price of $30,000. This after an investment of $5 billion or thereabouts between two plants - the Louisville assembly facility and a battery plant in western Michigan.
Then, the Kentucky Governor, Andy Beshear, got up and touted his state, his workers, Ford and the Louisville plant, in a largely forgettable political stump speech.
So, is there any “there” there? Yes, assembly time will be reduced by as much as 40 percent, due to 20 percent reduced parts content as compared to a typical vehicle, with fewer fasteners, a radically reduced number of workstations and much fewer castings. This isn’t a page from the Chinese EV playbook; it’s more of a direct copy of the systems first developed by Tesla, especially how castings are put together. The lithium iron phosphate batteries will be cheaper to produce too, while (allegedly) not compromising range.
So, when is this EV ”wonder truck” due to be produced? Farley & Co. is saying 2027, which means, given Ford’s track record of fumbling product introductions and the radical transformation of its assembly processes to pull this vehicle off, figure sometime in 2028. And $30,000? It’s a nice target, but don’t count on that figure for a second.
And remember, this product is being launched into the swirling maelstrom caused by an administration in Washington, D.C., that is egregiously anti-EV, one even going so far as attempting to cut funding – to the tune of $7.5 billion – for a national charging network that would put chargers damn-near everywhere.
I applaud the thinking and the detailed philosophy behind this project, because affordability is the key here, but make no mistake, the Ford Motor Company’s ability to execute a vision of this magnitude is highly suspect. Which is why I’m saying that we won’t see one of these trucks hit the market before 2028.
Yes, affordability remains the key to this business; I can’t stress this enough. And it will remain key for years to come. It’s absolutely essential that Ford is doing this project, because frankly, the lessons learned in building these EVs will allow the company to stay in business.
Too strong a statement?
Not in the least. Ford and the rest of the domestic automobile industry will be hanging by a thread for the foreseeable future because of the capricious nature of these tariffs, which will dominate day-to-day life for these auto companies indefinitely. Not to mention how these tariffs will negatively affect consumers’ basic ability to afford what’s being produced.
Oh, and one more thing, was this a “Model T Moment”? Oh, hell no, but that’s the “hook” Farley needed to attach to it in order to grab media attention. It worked, but only up to a point. It’s more like a “Hail Mary.” And the rest, as we like to say, is a giant “We’ll See.”
And that’s the High-Octane Truth for this week.
Editor's Note: Click on "Next 1 Entries" at the bottom of this page to see previous issues. - WG
Monday, August 11, 2025 at 11:28AM