Why Ford Could Revive 2 High-Volume Vehicles, and Soon

Core Viewpoint - Ford is shifting its strategy to focus on affordable electric vehicles (EVs), potentially reviving popular small models like the Fiesta and Focus, which aligns with changing consumer preferences and market dynamics in the EV sector [1][3][5] Group 1: Industry Evolution - The automotive industry has historically favored larger vehicles for higher profit margins, exemplified by Ford's F-150 and SUVs [2] - The dynamics have changed for electric vehicles, where larger vehicles require expensive batteries, making them less appealing to consumers [2][3] - Analysts suggest that EV pricing needs to fall between $25,000 and $30,000 to attract mainstream consumers, which is challenging for larger vehicles [3] Group 2: Ford's Strategic Shift - Ford's management is now focusing on small vehicles with less expensive batteries, which could lead to the revival of the Fiesta and Focus [3][4] - A dedicated "skunkworks" team has been established to develop affordable EVs, growing to at least 300 members, including talent from Tesla and other innovative companies [4] - The potential revival of the Fiesta and Focus is expected around 2026, coinciding with a competitive landscape of affordable EV options from various manufacturers [5] Group 3: Financial Implications - Ford's shift to smaller, affordable EVs is seen as crucial for the company to mitigate potential losses in its EV division, which could reach up to $5.5 billion in 2024 [5]