Ford is shifting its focus towards developing a new platform for affordable and compact electric vehicles, according to a recent report from Bloomberg. The company plans to launch a compact crossover in late 2026 with a starting price of around $25,000. This decision is in response to the increasing competition from low-priced Chinese electric vehicles entering the European market, with expectations of entering the U.S. market soon.
Ford is delaying its plans for an electric three-row SUV that was initially rumored to carry the Explorer nameplate. Instead, the company is prioritizing the development of small, affordable electric models. The first of these models will be a compact SUV set to debut in late 2026. This vehicle will target the entry-level Tesla and will be built on a new electric platform.
In addition to the compact SUV, Ford’s new platform is expected to pave the way for a small electric pickup truck. This model could serve as an electric alternative to the popular Maverick. Furthermore, the platform may also give rise to a dedicated ride-hailing vehicle, following the trail of similar projects by other automakers such as General Motors and Kia.
To keep costs down, the compact EV is anticipated to utilize a lithium-iron-phosphate battery, which is typically cheaper than standard lithium-ion batteries. Ford is also exploring other battery technologies to further reduce costs. The affordable EV project is being led by Alan Clarke, who previously worked on engineering the Tesla Model Y.
The decision to shift focus towards affordable electric models reflects Ford’s response to the evolving market dynamics. As competition intensifies, particularly with the influx of low-priced Chinese electric vehicles, Ford is adapting its strategy to remain competitive and cater to the needs of consumers seeking affordable electric options. By prioritizing the development of compact and cost-effective electric vehicles, Ford aims to carve a niche for itself in the rapidly evolving electric vehicle landscape.