DETROIT – Ford Motor is making a substantial $5 billion investment in its next generation of all-electric vehicles, incorporating a 48-volt electrical architecture first commercialized by Tesla with its Cybertruck. The move, announced Tuesday, signals a significant shift in Ford’s EV strategy as it aims to lower production costs and compete more effectively with both Tesla and emerging Chinese EV manufacturers.
The 48-volt system, discussed within the automotive industry for years, represents a departure from the traditional 12-volt system used in most vehicles. Instead of relying on a lead-acid battery to power accessories, the new architecture utilizes the EV’s high-voltage battery, improving efficiency, increasing electrical bandwidth, and reducing weight through minimized wiring. The system can also be stepped down to 12 volts when needed, managed by new electronic control units (ECUs).
Ford plans to debut this technology in a small electric pickup truck priced around $30,000 in 2027. This vehicle is the first model slated for production on Ford’s new “Universal Electric Vehicle” (UEV) platform, a foundational element of the company’s EV reset. The UEV platform is designed to significantly reduce production costs, aiming for price parity with gasoline-powered vehicles.
Ford CEO Jim Farley has described the UEV platform as a “Model T moment” for the company, referencing the historical impact of Ford’s early mass-produced vehicle. He emphasized the need for radical change in vehicle design and manufacturing, stating, “Now is time to change the game once again.” Farley also acknowledged the competitive pressure from Chinese automakers, asserting Ford’s commitment to “taking the fight to our competition, including the Chinese.”
The company anticipates the new EVs will feature 20% fewer parts, 25% fewer fasteners, 40% fewer workstations in the assembly process, and a 15% faster assembly time. These improvements are expected to contribute to greater EV adoption, despite a recent slowdown in U.S. EV sales following the expiration of federal incentives and less-than-anticipated consumer demand. U.S. EV sales peaked at 10.3% of the new vehicle market in September before falling to an estimated 5.8% in the fourth quarter.
Despite the market headwinds, Ford recently announced $19.5 billion in write-downs related to a pullback in broader EV plans, the company remains committed to investing $5 billion in the UEV platform through 2027. Alan Clarke, Ford’s executive director of advanced EV development, stated the company’s focus is on delivering an affordable EV that is also “extremely desirable.”
The adoption of the 48-volt system was influenced by Tesla’s pioneering work with the Cybertruck. Elon Musk, Tesla’s CEO, effectively provided competitors like Ford and General Motors with a blueprint for developing such a system in 2023. Clarke acknowledged receiving a letter from Musk outlining the technology, stating it “certainly added fuel to the fire” and served as a “helpful starting point.” He also noted it aided suppliers in preparing for 48-volt systems.
Beyond the 48-volt system, Ford is also implementing “gigacastings,” a manufacturing process popularized by Tesla. Gigacasting replaces numerous smaller, stamped parts with larger, cast components, streamlining production and reducing weight. Ford’s new pickup truck will utilize only two structural front and rear parts, compared to the 146 components used in its current gas-powered Maverick pickup. The company claims its aluminum castings are more than 27% lighter than those found in a Tesla Model Y.
The shift to a 48-volt system offers benefits beyond battery efficiency. Clarke, a former Tesla executive, explained that it’s “less expensive, has smaller wires and is the future of automotive.” He emphasized the importance of “future-protecting” the platform for long-term viability. The company is also utilizing “team bounties” to drive efficiency improvements and aerodynamic optimization.
Ford’s bet on the UEV platform and its associated technologies represents a critical juncture for the automaker. The success of this platform will be crucial in navigating the evolving EV landscape and competing with established players like Tesla and the growing presence of Chinese EV manufacturers. The $30,000 price point for the upcoming electric pickup truck is a key element in Ford’s strategy to broaden EV accessibility and drive mass adoption.
