To date, Ford has partnered with more than one rival automaker in an effort to combine resources, trim costs, and leverage economies of scale to produce all-electric vehicles and components such as batteries. Just a couple of months ago, Ford CEO Jim Farley revealed that the automaker planned to continue to forge partnerships with additional companies as it seeks to drive down the costs of its EVs, too. However, in a recent interview, Farley also poured a bit of cold water on that possibility – at least, as it pertains to certain kinds of partnerships.
“If your bet is the digital experience as a differentiator, you can’t use someone else’s electric architecture. If I use MEB, then another architecture in China, one in North America and another for export, that’s multiple different software,” Farley told the UK’s Car Magazine. “Software that has to be written to the individual module for propulsion, braking, steering, seats. If [Ford] is very committed to digital differentiation, it’s impossible to have that complexity. One of my biggest bets as CEO is our platforms, including our electric architectures. There will be places where we work with each other, such as MEB. But in the future that will be harder, not easier.”
Jim Farley seems to be directing these comments more toward the use of individual components such as platforms that stem from future partnerships, which makes sense given its difficulties in doing so over the past few years. In fact, a previous report indicated that the automaker’s EV future in Europe is a bit murky at the moment – at least beyond the Explorer EV and Capri EV, which are underpinned by Volkswagen’s MEB platform. Other reports have indicated that Ford Europe may wind up ditching that architecture altogether as it works to develop its own low-cost alternative.
We saw this same scenario play out already with Ford’s previous relationship with Rivian, which was originally expected to result in a new Blue Oval EV riding on that company’s Skateboard platform – though the complexities involved with such a process proved to be a bit difficult to overcome. Regardless, it stands to reason that Ford will continue to explore potential partnership opportunities in other areas – such as EV batteries, as it has done in numerous ways to this point.
Comments
Hopefully, he’ll be long gone when (and if) EVs are really ready for prime time.
This putz green lighted the 2025 Maverick front end catastrophe!
Like everything Mr. Farley does his partnerships turn to dust. His relationships with SK and CATL are the latest that are crumbling!! Who build a multi-billion dollar manufacturing facility at BlueOval in Tennessee and in Glendale, ky and mothballs a plant. Then is going to build a plant in Marshall, mi only to cut it in half. Mr.Ford, you need to get your company under control and focus, otherwise you will go down as the Ford who lost his grandfather company!! Get rid of Mr. Farley, and get someone who can pull the team together. He ain’t it!!
What hope can there be for any external partnerships when FMC shows a total lack of respect and integrity with its own employees. Bullied harassed and hounded into retirement after 36 years service. After 5 years of hell to be told your grievance is upheld you have been treated appalingly but we accept you are mentally destroyed so you are no use to us now, so medical retirement is your only option goodbye.
It sounds like the strategy described above is a bit murky. On one hand the desire is there to want to do everything inhouse for control and consistency, then, one the other hand that seems to be the more costly route, and it’s clear that Ford is looking to be able to compete with the upcoming Chinese onslaught about to hit our shores. It seems that navigating these uncertain waters will be an ever present wavering point. Hope they figure it out…and soon!
I am a person with Ford in my blood with my first car being a Ford, now at 65 I am so disappointed having expected the New Ford Explorer to have the new LFP Ginseng EV battery from CATL. Instead the New EV Explorer has the lousy NCM EV Battery that does not support a climate of 14 degrees C and minus 2 degrees C, when the optimum temperature of this battery is between 20 degrees C and 35 degrees C, why did Ford make the same mistake as the Mustang battery system.
In north hemisphere countries these NCM batteries lost up to 25% of range also you cannot fast charge these batteries.
Ford unless your team wakes up all the glorified hype is becoming like Toyota another EV failure company, the result unfortunately is the end of line for Ford.
Perhaps the great Irish man old Henry Ford from west Cork in Ireland is probably turning in his grave in shame.
Jim Farley is a dope, he is making a mess out of Ford. After this one there will never be another Ford in my life. 2200.00 for a tail light, someone needs to be in jail. Disgusting!
I have to agree with some commenters here that Mr. Farley has been more of a liability to the company and needs to go. Either he goes or temporarily bring back Alan Mulally to mentor Mr. Farley on how to run a quality-oriented company. How about Mulally mentor Bill Ford on how to manage and oversee his company. Bill at least acknowledged he needed someone to run the company and hired Mulally because it was too much for him.
I’m a 40 + year retired Boeing guy and sure wish Alan was back helping mentor the new CEO.