Losing ground in the EV race by the day, Ford needs to convince its truck-loving customers to go electric.
What happened: Ford announced that it will release a US$28,350 electric truck next year called Fathom, the first model in its new line of low-cost EVs designed to compete with popular Chinese models.
Catch-up: Back in December, Ford abandoned its electric F-150 pickup and took a US$19.5 billion writeoff in the fourth quarter — mainly from its struggling EV division. That balance sheet hit was more than the company’s operating income for the past three years combined.
Ford refocused its EV efforts around a secret engineering team in California that was tasked with building a family of low-cost EVs and completely reinventing the way it designs and builds cars. The Fathom is the first model to come out of that project.
Why it matters: Legacy automakers like Ford can’t rely on the Canadian and U.S. governments to keep Chinese EVs out of the market forever — Ottawa has already opened the door. Fathom is Ford’s self-described “moon shot” to get back in the EV race before BYD and Chery’s low-cost vehicles inevitably make their way into the States.
Yes, but: Even with an affordable pickup, playing catch-up won’t be easy. China already makes 70% of the world's electric cars and has dramatically increased its EV exports to Europe, South America, Australia, and other international markets.
What’s next: The Trump administration has hinted that it would be willing to allow Chinese EV makers into the U.S. market as long as they build the vehicles in the States with American workers.—LA
