To compete with agile companies like BYD, Ford established an independent team, free from the company's legacy systems and processes, to develop a new, affordable EV platform. This radical approach was deemed necessary because incremental improvements on existing models would fail against formidable Chinese competition.
To make high-stakes decisions, CEO Jim Farley practices 'Gemba'—a Japanese principle of 'go and see.' He personally tore down competitor vehicles to observe engineering differences firsthand, like counting fasteners and weighing wiring, which directly informed his decision to overhaul Ford's EV strategy.
Ford's EV strategy isn't primarily benchmarked against Tesla, but against Chinese giants like BYD. CEO Jim Farley highlights their vertical integration, government subsidies, and focus on affordable technology as the formidable competitive threat that is shaping Ford's new platform and overall strategy.
CEO Jim Farley believes the national conversation on AI is too focused on white-collar jobs. He points to a critical shortage of essential workers (construction, factory, emergency services) and argues the real opportunity and societal need for AI and automation is in boosting productivity for these blue-collar roles.
Ford manufactures over 80% of its US-sold vehicles domestically, yet faces a huge financial penalty from tariffs. Because it's a top US manufacturer, it must import the most parts, leading to 'stackable' tariffs that CEO Jim Farley says evaporate about 20% of the company's profit.
Ford's adoption of advanced Apple CarPlay hinges on a key question: Does Apple want to control core vehicle functions? CEO Jim Farley says if Apple seeks to manage speed limits or vehicle access, Ford will reject it to maintain safety and integration with its own advanced driver-assistance systems (ADAS).
To manage the immense risk of its new manufacturing process, Ford will launch its next-gen EV as a minimal viable product (MVP). The initial release will feature just one color, one spec, and basic software capabilities. More complexity and features will be rolled out gradually post-launch after validating the core product.
CEO Jim Farley uses an unusual metric to gauge engineering efficiency: the number of fasteners. He observed that a Tesla Model Y has one-third the fasteners of a Ford Mach-E, viewing it as a direct 'output metric for how elegant the simplicity of your engineering solution is' that impacts cost and manufacturability.
Ford's CEO believes the next major growth phase for EVs is the sub-$30,000 market, which competes directly with the average price of a 5-year-old used car. This is where the mass market shops, not in the premium segment where EVs began. Success requires a sustainable, profitable model, not just a low sticker price.
Ford intentionally locks engine control units (ECUs) in new Mustangs, preventing user modifications. CEO Jim Farley explains this is not about control but about quality. Unapproved tunes can lead to severe, expensive engine damage, and Ford is unwilling to risk its brand's reliability reputation for the sake of customization.