Ford, inspired by Tesla, reinvents this iconic model in real time
Ford Motor Co. is revamping its electric Mustang Mach-E on the fly to make it more cost-effective, an approach that portends big changes in the way the automaker designs and builds vehicles.
Chief Executive Jim Farley told analysts Thursday that Ford would no longer wait for the next model change to rework a vehicle. Through software updates and hardware reengineering, the company is reducing the cost of building the Mach-E at its factory in Mexico in real time.
“We’re not going to wait until next year,” Farley said on a conference call to discuss fourth-quarter results, which were below Wall Street estimates. “We’re going to redesign this vehicle now, and then use that expertise for the F-150 Lightning plug-in mic” that goes on sale this spring.
As an example, Farley said engineers were reworking the Mach-E’s cooling system to cut the number of pipes by a third and cut the number of motors in half. Fewer parts mean less cost and more profit, he said.
This on-the-fly engineering to increase the bottom line will become a new way of doing business at Ford, Farley said. Ford’s CEO has frequently praised Tesla Inc. and is said to be reorganizing using that company as a role model.
“We’ve learned a lot about the lack of integration in our engineering operations by comparing our engineering on Mach-E to others that are best in class, and we find plenty of profit opportunities,” Farley said. . the industry as long as I have, I haven’t felt that lucky to take so many costs after work 1.”
This story was published from a news feed with no text edits. Only the title has been changed.
Never miss a story! Stay connected and informed with Mint. Download our app now!!