Ford Boss Says No To Gen 2 EVs Until Secret New Platform Shows Profits

Ford CEO Jim Farley has revealed that an undisclosed «skunkworks team» has been secretly working on a low-cost electric vehicle platform to rival the likes of Tesla and Chinese manufacturers.

The surprise announcement was made during a recent earnings call, with Farley noting the small development team, comprised of «some of the best EV engineers in the world,» operated independently from Ford, much like a startup. In the last two years, the group has developed a flexible electric vehicle platform that will be used for a wide range of vehicles and as an «installed base for software and services.»

Aside from that, no additional details were shared. However, the charismatic CEO did say the new platform aims to be low-cost, with the primary aim being to compete with affordable Chinese imports and Tesla, which continues to cut prices and rake in profits.

The $42,995 Mustang Mach-E Select is the Blue Oval's most affordable electric vehicle. Comparatively, the Tesla Model Y is $43,990 but is still eligible for the lucrative EV tax credit incentives. Even without a discount, the refreshed Model 3 is cheaper still, with a base price of $38,990. Let's not forget that Tesla is also working on an even more affordable compact crossover, due next year.

It's unclear whether this new platform will be used for Ford's Gen 2 series of electric vehicles, but we assume that will be the case. Regarding the next generation of Ford EVs, Farley noted that they're being designed to be as profitable as possible and should start making money for Ford «in the first 12 months of their launch.» Last year, the automaker admitted to losing $36,000 on every electric car it sold, confirming that a rethink in EV strategy was necessary.

«The biggest issue we have in our Gen 1 vehicles, of course, is that the revenue collapsed, and they're not optimized from a cost standpoint,» commented John Lawler, CFO of Ford. Lawler added that Ford would continue improving the cost structure of Gen 1 EVs and wouldn't launch Gen 2 cars «unless we can get to a profit and return on that capital.»

Farley noted that Ford will invest less capital in large electric vehicles. Still, he said that Gen 2 replacements for