Is this Ford’s next Model T moment

Investing.com -- Ford Motor is aiming for what it calls a “new Model T moment” with the unveiling of its Ford Universal Vehicle Platform, a move Bank of America says could mark a major shift in electric vehicle manufacturing.

At its “Our Next Model T Moment” event, Ford announced it will invest $2 billion in its Louisville, Kentucky, plant to begin production under its Skunkworks project.

BofA said it is “encouraged that Ford is learning from EV manufacturing leaders to come to market with a compelling value proposition.”

The first model on the new platform will be a pickup truck, expected in 2027, with a starting price of about $30,000.

According to BofA, the launch “is motivated by Ford’s stronghold of the commercial vehicle segment,” and the company believes the cost of ownership will be “very compelling” for commercial users.

Ford also faces competition from Slate Auto’s pickup, expected at roughly $27,500 in the same year.

BofA noted that Ford is “adopting Tesla’s and Chinese OEMs’ manufacturing approach,” including weight reduction, simplified processes, and fewer parts.

Changes are said to include eliminating 4,000 feet of wiring, cutting 25% of fasteners, and reducing total parts by 20% compared with a typical truck.

Ford will also use unicasting, similar to Tesla’s gigacasting, and may abandon traditional assembly lines in favor of parallel production, potentially speeding manufacturing by 15%.

While U.S. EV demand has slowed, BofA said “it appears that Ford did its homework” and is positioning for “the next wave of electrification” both domestically and internationally. The bank reiterated its Buy rating and $14 price target on the stock.

“The bottom line is that we see the event as positive for the company and its competitiveness both domestically and internationally,” concluded BofA.

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