Ford's EV Gambit: Recalls, Restructuring, and a Race to Reinvent the Model T

Ford BioSnap a weekly updated Biography.

Ford has been under an intense spotlight in the past few days, juggling major product news, high-stakes recalls, financial turbulence, and bold strategic moves that could reshape the automaker for years to come. Just yesterday, Ford made waves by unveiling its new Long Beach electric vehicle development center, a state-of-the-art campus where a 350-person skunkworks team—many poached from Tesla, Rivian, and even Apple—is racing to design a low-cost EV pickup scheduled for debut in 2027. EV chief Doug Field and engineering star Alan Clarke both talked up the site’s symbolic return to Ford’s innovative West Coast roots, vowing that “a new era for electric vehicles” starts now. The Long Beach center’s opening coincided with a somber announcement: the Irvine design studio is shutting down, with some 263 workers offered relocation to Long Beach or Dearborn.

Ford has teased this secretive low-cost EV team for months, with CEO Jim Farley promising a “Model T moment” at an upcoming Kentucky event on August 11. Multiple outlets including TechCrunch and Autoweek have noted that Farley isn’t just hyping a new vehicle, but a whole new way of making, selling, and pricing EVs, targeting both retail buyers and Ford Pro commercial clients. The new platform and manufacturing process aim to fend off fierce Chinese rivals like BYD and Geely, with the first midsize pickup—reportedly called the Ford T3—expected by 2027. Ford’s lithium iron phosphate battery plant in Michigan is running full steam ahead as part of the cost-cutting push, and insiders hint that we might see a Lincoln Corsair EV and new Transit e-van follow the T3.

Financially, the mood is volatile. Ford’s second quarter earnings were a mixed bag: total revenue jumped 5 percent to $50.2 billion, but the Model e electric division lost a staggering $1.3 billion. Ford Pro’s commercial business, on the other hand, remains a cash cow, delivering $2.3 billion in profit. The company reinstated full-year guidance and kept its dividend steady, but Wall Street reacted coolly, sending Ford’s stock down six percent to $10.82, according to Ford Authority.

Tariffs are also tugging at Ford’s bottom line. Automotive Dive and Bloomberg both reported on Farley’s warnings that recent U.S. tariff reductions on Japanese vehicles will allow the Toyota RAV4 to undercut the Kentucky-built Escape by $5000, with the Bronco similarly squeezed by the 4Runner. Ford’s finance chief revealed the company is bracing for up to $3 billion in annual additional tariff costs due to persistent levies on vehicles imported from Mexico and Canada.

Structurally, Ford is still haunted by an industry-leading rash of recalls—already 89 this year, smashing decade-old records. The latest, just days ago, covers 312,000 vehicles, including the hot-selling Bronco and the flagship F-150, due to a potentially dangerous brake assist defect. A prior July recall swept up nearly 700,000 more SUVs over fire risks. Ford insists its fixes are now 50 percent better for newer models, but Chief Operating Officer Kuman Galhorta admits the recall crisis is a drag Ford desperately wants to end.

On social media, Bronco fans are gleeful, celebrating the SUV outselling the Jeep Wrangler for seven straight months, but critics—especially on X and Reddit’s r/cars—are roasting Ford over its reliability headaches and bruised stock chart. August eyes are locked on Ford’s big Kentucky reveal, with industry insiders betting Farley and his team will need more than buzzwords to win back investor and consumer confidence. If Ford really wants a new Model T moment, this is the stage—and pressure—where it has to deliver.

Get the best deals https://amzn.to/3ODvOta

Episode Transcript

Speaker 1 (00:00):
Ford has been under an intense spotlight in the past
few days, juggling major product news, high stakes recalls, financial turbulence,
and bold strategic moves that could reshape the automaker for
years to come. Just yesterday, Ford made waves by unveiling
its new Long Beach Electric Vehicle Development Center, a state
of the art campus where a three hundred fifty person

(00:22):
skunkworks team many poachs from Tesla, Rivian and even Apple,
is racing to design a low cost EV pickup scheduled
for debut in twenty twenty seven. EV chief Doug Field
and engineering star Alan Clark both talked up the site's
symbolic return to Ford's innovative West Coast routes, vowing that
a new era for electric vehicles starts now. The Long

(00:45):
Beach Centre's opening coincided with a somber announcement the Irvine
Design Studio is shutting down, with some two hundred sixty
three workers offered relocation to Long Beach or Dearborn. Ford
has teased this secretive low cost EV team for months,
with CEO Jim Farley promising a model team moment at
an upcoming Kentucky event on August eleventh. Multiple outlets, including

(01:10):
tech Crunch and Autoweek, have noted that Farley isn't just
hyping a new vehicle, but a whole new way of making, selling,
and pricing evs, targeting both retail buyers and Ford Pro
commercial clients. The new platform and manufacturing process aimed to
fend off fierce Chinese rivals like BYD and Gly, with

(01:31):
the first mid size pickup reportedly called the Ford T
three expected by twenty twenty seven. Ford's lithium iron phosphate
battery plant in Michigan is running full steam ahead as
part of the cost cutting push, and insiders hint that
we might see a Lincoln Corsair EV and new Transit
evan follow the T three. Financially, the mood is volatile.

(01:53):
Ford's second quarter earnings were a mixed bag. Total revenue
jumped five percent to fifty dollars in two, but the
Model E Electric division lost a stabbering one dollar in
three cents. Ford Pro's commercial business, on the other hand,
remains a cash cow, delivering two dollars and three cents
in profit. The company reinstated full year guidance and kept

(02:15):
its dividends steady, but Wall Street reacted coolly, sending Ford's
stock down six percent to ten dollars in eighty two cents.
According to Ford Authority, tariffs are also tugging at Ford's
bottom line automotive dive in Bloomberg both reported on Farley's
warnings that recent US terraff reductions on Japanese vehicles will

(02:35):
allow the Toyota RAV four to undercut the Kentucky built
Escape by five thousand dollars, with the Broncos similarly squeezed
by the forerunner. Ford's finance chief revealed the company's bracing
for up to three billion dollars in annual additional tariff
costs due to persistent levies on vehicles imported from Mexico
and Canada. Structurally, Ford is still haunted by an industry

(02:57):
leading rash of recalls, already eighty nine dar year, smashing
decade old records. The latest, just days ago, covers three
hundred twelve thousand vehicles, including the hot selling Bronco and
the flagship F one hundred and fifty, due to a
potentially dangerous break assist defect. A prior July recall swept
up nearly seven hundred thousand more SUVs over fire risks.

(03:20):
Ford insists its fixes are now fifty percent better for
newer models, but Chief operating Officer Kuman Glorida admits the
recall crisis is a drag Ford desperately wants to end.
On social media, Bronco fans are gleeful celebrating the Suv
out selling the Jeep Wrangler for seven straight months, but critics,
especially on X and reddits are Cars, are roasting Ford

(03:43):
over its reliability, headaches and bruised stock chart. August eyes
are locked on Ford's big Kentucky reveal, with industry insiders
betting Farley in his team will need more than buzzwords
to win back investor and consumer confidence. If Ford really
wants a new model team moment, this is the stage
and pressure where it has to deliver, and that is

(04:04):
it for to day. Make sure you hit the subscribe
button and never miss an update on foard. Thanks for listening.
This has been a quiet please production. For more check
out Quiet Please dot a I or search the term
biosnap wherever you listen