Ford Motor said it will base its next generation of electric vehicles on a 48-volt electrical architecture—a system first commercialized in the US by Tesla—as part of a US$5 billion investment aimed at lowering EV costs and restoring competitiveness in global markets. The strategy will debut with a small electric pickup priced at about US$30,000, scheduled for launch in 2027 and developed on Ford’s new Universal Electric Vehicle (UEV) platform.
The 48-volt system replaces the industry’s long-standing 12-volt architecture used to power vehicle accessories. Traditional 12-volt systems rely on separate lead-acid batteries, whereas Ford’s approach draws power directly from the EV’s high-voltage battery. The company said the shift reduces complexity and addresses reliability issues that have led to recalls across the sector. Ford added that the system improves efficiency, increases electrical bandwidth and reduces vehicle weight by shortening wiring harnesses and cutting copper use.
The move follows Tesla’s introduction of a 48-volt system on the Cybertruck in 2023, which demonstrated the technology’s commercial viability. Tesla CEO Elon Musk later shared technical guidance with competitors, including Ford and General Motors, to help accelerate supplier readiness across the industry. Ford executives said the company had already committed to the technology before receiving Tesla’s materials, but that the information helped align suppliers and validate design decisions.
Ford CEO Jim Farley described the shift as a decisive effort to narrow the cost gap between electric and internal combustion vehicles. “At Ford, we took on the challenge many others have stopped doing. We’re taking the fight to our competition, including the Chinese,” Farley said during a presentation at a Kentucky plant that will build the new electric pickup. He added that legacy automakers had “played it safe” for too long as new entrants expanded rapidly.
According to Ford, vehicles built on the UEV platform will reduce total parts by 20% compared with current models, use 25% fewer fasteners and require 40% fewer workstations along assembly lines. Assembly time is expected to be 15% faster. These changes are designed to offset the high cost of EV batteries, which have made electric models significantly more expensive to manufacture and, in many cases, unprofitable.
The company said the 48-volt architecture also enables future scalability. Power can be stepped down to 12 volts through electronic control units that manage specific vehicle systems, allowing compatibility with existing components while supporting higher electrical loads from advanced driver assistance systems, infotainment and software-defined features.
Alan Clarke, Ford’s executive director of advanced EV development, said the transition reflects long-term planning. “It is less expensive, has smaller wires and is the future of automotive,” Clarke said. “If you want to future-proof this platform to exist for more than a decade, it was very clear that 48 volts made the most sense.”
Ford estimates the wiring harness in its upcoming midsize electric pickup will be more than 4,000 feet shorter and about 22 pounds lighter than the harness used in its first-generation electric SUV. The weight reduction contributes directly to efficiency gains and extends vehicle range without increasing battery size.
Beyond electrical systems, Ford is adopting large-scale aluminum “gigacastings,” a manufacturing process pioneered by Tesla, to further reduce cost and complexity. Gigacastings replace dozens of stamped and welded parts with single large cast components produced by high-pressure machines. Ford said its new pickup will use just two major structural front and rear castings, compared with 146 individual structural components on the gas-powered Maverick small pickup.
Ford also said its aluminum castings for the upcoming EV are more than 27% lighter than comparable structures on the Tesla Model Y. The company is pairing these changes with aerodynamic improvements and internal incentive programs focused on efficiency gains across engineering teams.
The investment comes as US EV demand slows following changes in federal incentives and weaker-than-expected consumer adoption. According to Cox Automotive, EV sales peaked at 10.3% of the US new vehicle market in September before incentives expired, then fell to an estimated 5.8% in the fourth quarter. These conditions prompted Ford to record US$19.5 billion in write-downs related largely tied to scaled-back EV plans, even as it reaffirmed its US$5 billion commitment to the UEV platform through 2027.
Ford executives said the strategy is designed to withstand market volatility by aligning EV costs more closely with gasoline-powered vehicles. “Our focus has been on giving customers everything they would get in a nice vehicle and more,” Clarke said. “We think that will allow us not just to make an affordable vehicle, but one that customers actually want.”
Farley has referred to the initiative as a “Model T moment” for Ford, drawing a parallel to the vehicle that enabled mass adoption of automobiles in the early 20th century. While the comparison underscores the scale of internal change, Ford executives framed the effort primarily as a manufacturing and cost discipline reset rather than a single product launch.
The company said its next-generation EVs will compete not only with Tesla but also with rapidly expanding Chinese automakers that have leveraged scale and vertical integration to undercut prices globally. By simplifying vehicle architecture, reducing materials, and shortening assembly processes, Ford aims to regain pricing flexibility while maintaining margins.
Ford Motor reported a fourth-quarter 2025 net loss of US$11.1 billion and a full-year net loss of US$8.2 billion, reflecting nearly US$20 billion in charges tied to the restructuring of its electric vehicle business and higher-than-expected tariff costs. Despite the losses, the automaker forecast adjusted earnings before interest and taxes of US$8 billion to US$10 billion in 2026, indicating expectations of improved profitability as cost reductions advance and new products are introduced.
