Ford aims to set itself apart from the competition in the EV industry and plans to achieve this by launching a brand-new seven-seater SUV with a three-row configuration. The new product announcement comes off the back of bleak news from Ford’s EV division in its first-quarter earnings report, which saw the automaker report a loss of just under $60,000 per EV sold. However, returns from their ICE and commercial arms helped Ford remain profitable.
While the EV losses may set off alarm bells for some, Ford has been frank about its investments and costs incurred in the EV space, making positive noises about its long-term play in the sector. But despite bullish moves, including significantly ramping up production of the Mustang Mach-E, the legacy carmaker has come under pressure from Tesla’s multiple price cuts since the beginning of the year. The five-seat SUV market is still dominated by the Tesla Model Y, with the base price dropping from $67,190 at the beginning of the year to $46,690 at the time of writing. As such, Ford has had to make its own price cuts to keep the Mach-E competitive.
Related: Elon Musk Is Willing To Sacrifice Tesla’s Premium Image To Take Down The Likes Of Ford
It’s not just Tesla that Ford is concerned about. In the same segment that the Mach E competes with the Model Y, Ford’s CEO Jim Farley predicts that some 45 electric five-seat SUVs will be on the market by 2025. “In contrast to two-row crossovers that we believe will be a very saturated market, we believe Model e can be highly differentiated in markets where we know the customer well, like the three-row utility space,” Farley said via Autocar.
Under Farley, Ford is chasing buyers who may never have owned an EV before — a segment of converts responsible for many F-150 Lightning purchases, according to the company. More details of the new SUV, along with “a bunch of EV Pro [commercial] vehicles,” will be revealed at the end of the month as part of a special investor day.
