Ford’s stealth EV platform aims to reset strategy

The initiative, led by a small “skunkworks” team operating with a high degree of autonomy, centres on a flexible platform intended to underpin multiple vehicle types. Senior leadership has acknowledged that Ford’s Model e division, which houses its electric vehicle operations, has been posting substantial operating losses as the company invests in new technology, manufacturing capacity and battery supply chains. The new architecture is expected to be pivotal in narrowing those losses over the next few years.

Chief executive Jim Farley has previously said the group must “radically improve” the cost structure of its electric vehicles to compete with Tesla and a wave of lower-priced Chinese brands that have expanded rapidly in global markets. The company’s current electric line-up includes the Mustang Mach-E, the F-150 Lightning pick-up and the E-Transit van. While these models have gained market share in North America, profitability has remained elusive amid pricing pressure and slower-than-anticipated growth in demand.

The new platform is being engineered with a strong focus on aerodynamics, battery efficiency and simplified manufacturing. Industry consultants say that reducing drag coefficients and improving energy density are among the most effective ways to extend range without dramatically increasing battery size, which remains the most expensive component in an electric vehicle. By designing a skateboard-style architecture that can accommodate different body styles and battery configurations, Ford aims to spread development costs across higher volumes.

Executives have signalled that lessons are being drawn from Tesla’s integrated approach, which combines vehicle design, software and battery management in a tightly coordinated system. Tesla’s Model 3 and Model Y are built on platforms that prioritise structural battery packs and streamlined underbodies to improve efficiency. Chinese manufacturers such as BYD have also adopted highly integrated battery-to-body designs, allowing them to control costs and deliver competitive range at lower price points.

Ford’s challenge is compounded by a global price war in electric vehicles that has compressed margins. Tesla has repeatedly cut prices in key markets, while Chinese brands have leveraged domestic scale and vertically integrated battery supply chains to undercut established Western manufacturers. Analysts at major investment banks have estimated that Ford’s electric division has been losing billions of dollars annually as it ramps up capacity and invests in next-generation models.

Farley has argued that the company must treat its EV operations more like a start-up within a legacy organisation. The skunkworks team, reportedly based away from the company’s traditional engineering centres, has been given a mandate to rethink vehicle architecture from the ground up rather than adapt internal combustion platforms. This approach echoes the original skunkworks model popularised in the aerospace industry, where small, focused teams are tasked with rapid innovation outside standard corporate processes.

A universal platform could allow Ford to develop smaller, more affordable electric cars alongside larger crossovers and commercial vehicles. Market research indicates that demand growth is shifting toward lower-priced models, particularly as government subsidies in some regions are reduced and consumers become more price-sensitive. European and Asian markets have seen increased competition in compact EV segments, where cost per kilowatt-hour and manufacturing efficiency are decisive.

Battery strategy is central to the project. Ford has been investing in lithium iron phosphate technology for certain models, citing lower costs and improved durability compared with nickel-rich chemistries. LFP batteries generally offer lower energy density but can be more cost-effective for entry-level vehicles. By designing a platform compatible with multiple chemistries, Ford could tailor battery packs to specific segments while maintaining common structural elements.

Supply chain resilience also factors into the new architecture. The company has been expanding partnerships with battery manufacturers and investing in domestic production facilities in North America to meet regulatory requirements tied to tax incentives. Aligning the new platform with these regional production strategies is expected to be critical for maintaining eligibility for consumer credits and avoiding tariff exposure.

Investors have been closely watching Ford’s capital allocation in electrification. While the company has reaffirmed its commitment to an all-electric future in key markets over the coming decade, it has also moderated production targets in response to softer demand and infrastructure constraints. Charging network availability, grid capacity and consumer concerns about resale values continue to influence purchasing decisions.