Jim Farley is approaching the fifth anniversary of his appointment as Ford CEO, with the company undergoing changes to compete in the modern landscape.
Last week, Ford announced its plan to launch a ‘Universal Vehicle’ as a part of a US$5 billion ($7.5b) investment in its Louisville Assembly Plant and BlueOval Battery Park in Michigan, backing its US production lines to fend off future EV competition.
Billed as a game changer, the EV platform will first underpin a compact pickup before being used in two- and three-row SUVs (called crossovers in the US), as well as commercial vans.
Speaking at last week’s announcement, Farley made clear Ford’s intentions to disrupt the North American EV market with the new platform, while also taking a shot at the most popular vehicles on the road: SUVs.
“Now is time to change the game once again,” Farly said.
“The new pickup, built here in Louisville, is going to cure a lot of problems, like all those generic, two-row crossovers (SUVs) that dominate our industry.
“This new truck, based on this universal platform, is going to be more spacious inside than the RAV4 – the best-selling car in the United States – but it will have a frunk and it will have a whole pickup bed behind it.
“No one has seen this kind of flexibility.”
The RAV4 was not only the best-selling car in the US last year, but also the world. More than 1.18 million examples were sold globally in 2024, and it’s expected to remain the most popular vehicle this year too.
In Australia, the mid-size SUV segment which the RAV4 occupies is the largest by volume locally, representing about 23 per cent of the new-car market.
Despite this, Ford exited Australia’s market mid-sized SUV market in 2023 when our Spanish-sourced Escape was axed, even though the model was soon updated in the US where it’s built for local customers.
‘Humbling’ Chinese cars could end traditional brands – executive
In 2022, its last full year on sale, Ford sold 2179 Escapes in Australia, compared to 34,845 Toyota RAV4s and 27,062 Mazda CX-5s.
It looks like the Escape may be closing in on the end of the road globally, given the Louisville plant where the new EVs will be made is where the SUV is currently produced.
Though Ford never had Toyota’s measure in the SUV segment locally, the Blue Oval has celebrated making Australia’s best-selling vehicle across the past two years, the Ranger ute.
Year-to-date, the Ranger is ahead of both the HiLux ute and RAV4 on the local sales charts, putting it on track for a third consecutive year atop the standings.
Discussion about this post