Ford is Developing Compact All Electric Car

It's been reported that Ford is developing a $25,000 compact electric car that will be available by the end of 2026.

Recently, both Ford and General Motors have made cuts to the production of electric vehicles. The reason is that slowing demand for electric vehicles, high prices, and hardware and software failures are affecting market performance. Consumers also have concerns about the uneven charging infrastructure in the United States.

In the face of this situation, Ford has made adjusting measures, shifting its main focus to smaller, lower-cost electric vehicles and postponing plans for a three-row electric SUV. Currently, Ford is assembling a team of professionals in Irvine, California, to focus on the development of a new electric platform to support a wide range of vehicles, including compact SUVs and small pickup trucks.

The new electric compact SUV will reportedly go on sale in late 2026 with a starting price of about $25,000 USD. It sits in the same range as the expected selling price of the low-cost electric car being developed by Tesla. The new vehicle will be powered by lithium iron phosphate batteries and will be about 30 percent cheaper than conventional lithium-ion batteries.

At the same time, Ford is actively exploring other battery technologies in the hope of further cost reductions. These adjustments are all in response to the current competitive market situation.

It should be noted that in the fourth-quarter 2023 earnings call held in February this year, Ford said it was reconsidering its electrification strategy and planned to develop small electric vehicles based on a new low-cost platform. This is largely due to Ford's electric vehicle division, Model e, losing more than the previously expected $3 billion in 2023.

It is clear that the automotive industry is facing unprecedented challenges as market competition intensifies and technology develops rapidly. Major companies need to continue to innovate and adjust their strategies to adapt to market demand and remain competitive