Ford makes 'most radical redesign since the Model T' as it looks to combat billions in losses
Published on Aug 19, 2025 at 8:13 AM (UTC+4)
by Callum Tokody
Last updated on Aug 19, 2025 at 9:26 AM (UTC+4)
Edited by
Kate Bain
Ford model T heritage is now guiding a Ford redesign that targets the way electric vehicles are manufactured while responding to Tesla competition.
The company has reported more than $12 billion in EV losses in recent years, showing the strain of its transition into the electric market.
Executives argue the shift will reduce costs and help Ford remain competitive against Tesla and Chinese automakers.
The scale of the change demonstrates how urgently Ford is working to secure its future in electric vehicles.
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Ford Model T sparks bold new system
CEO Jim Farley called the strategy ‘the most radical redesign of how we manufacture cars since the Model T’.
He explained that Ford has moved away from its century-old assembly line and toward a new system designed for electric vehicles.
The Ford redesign was prompted by heavy financial pressure, including $2.2 billion in EV losses during the first six months of 2025.
The Ford redesign involves adopting lower-cost materials and reworking assembly processes to reduce expenses.
Industry analyst Sandy Munro said the changes put Ford ‘within spitting distance’ of Chinese manufacturers when it comes to cost.
More affordable electric vehicles would help Ford challenge Tesla competition, which has been defined by sharp price cuts in recent years.
Farley admitted that the plan comes with risks.
“We are doing so many new things I can’t tell you with 100 percent certainty that it will all go just right,” he said.
The remark underlines the uncertainty of replacing a production system that has been central to Ford for generations.
Tesla pressure reshapes the market
The Ford redesign also highlights the impact of Tesla competition on the broader market.
Tesla has repeatedly reduced prices, forcing rivals to find new ways to cut costs.
Ford’s Mustang Mach-E and F-150 Lightning were strong launches, but sustained losses proved the company needed a more fundamental solution.
By invoking the ford model T, Ford points back to the 1913 moving assembly line, which transformed car manufacturing worldwide.
That breakthrough made vehicles affordable for everyday buyers.
The company is now attempting a similar reset, lowering the cost of electric vehicles to expand access and strengthen its market position.
The implications could reach far beyond Ford.
If the new system proves effective, other manufacturers may adopt similar strategies to keep up with Tesla competition and the rapid growth of Chinese automakers.
That shift could accelerate cost reductions across the EV industry, which would benefit consumers but raise pressure on slower-moving companies.
The risks are significant, as failure to deliver could deepen Ford’s financial difficulties.
Ford is once again looking to its past as it plans for the future.
By drawing on the legacy of the ford model T, the automaker is betting on a radical Ford redesign to cut the cost of electric vehicles.
The move is aimed at competing more effectively with Tesla and Chinese rivals.
However it plays out, the move is among the most consequential in Ford’s modern history.
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Callum Tokody is a content writer at Supercar Blondie, where he covers the latest in the automotive world with a focus on design and performance. Callum has a background in automotive journalism and has contributed to a range of publications in Australia and the UK. Outside of work, he’s a design enthusiast with a soft spot for anything with a V8 and a good story.
