US automaker Ford Motor announced on Monday plans to roll out its new family of affordable electric vehicles(EVs)in 2027,including a midsize pickup truck with a target starting price of$30,000,Reuters reported.
The Wall Street Journal on Monday called the affordable electric pickup an answer to Chinese EVs.
It must be acknowledged that$30,000 is indeed a competitive price point,especially at a time when the US EV market is facing significant headwinds.It is understandable that American automakers hope to expand their market share through price-friendly products.
Yet,fundamental challenges loom:achieving supply chain localization,maintaining technological leadership,and effectively controlling costs appear nearly impossible to reconcile simultaneously in the current US industrial environment.
Ford's plan has been ensnared in the double squeeze of policy and market from the very beginning.In recent years,the US government has erected supply chain barriers through tariff measures targeting EV components and materials linked to China.For instance,in September 2024,the US finalized a tariff hike on certain Chinese-made goods,including a 100 percent tariff rate on EVs and a 25 percent rate on EV batteries,CNN reported.
While this policy ostensibly aims to promote the development of the local industrial chain,it has actually pushed American automakers into a dilemma.Statistics from the International Energy Agency showed in March that China accounts for more than 75 percent of the global battery supply.In this environment,requiring US automakers to completely avoid Chinese supply chains is equivalent to additional costs from the starting line.
Against this backdrop,Ford's announcement of a$3 billion investment to develop batteries at a Michigan factory,aimed at utilizing domestically produced components,reflects a politically motivated choice.However,this decision has complicated cost controls significantly.From raw material procurement to manufacturing,stringent compliance requirements are consistently driving up production costs.
Compounding these challenges is the 50 percent tariff on US copper imports,which is set to further inflate costs for American automakers.This tariff exacerbates an already strained cost structure,making it even harder to align with the$30,000 target that underpins the pickup's market appeal.
This predicament is not unique to Ford but a common challenge faced by the entire US EV industry under the pressure of supply chain localization policies.To avoid high tariffs,automakers have to adopt more expensive local supply chains.However,these increased production costs diminish their price competitiveness in the market,creating a vicious cycle:the pursuit of supply chain security undermines market competitiveness,and the resulting decline in competitiveness hampers companies'ability to invest in research and development.
Changes in the market environment further cast a shadow over the prospects of US automakers.While global sales of electric and plug-in hybrid vehicles jumped 24 percent year-on-year in June,EV sales in the US were down 1 percent in the month and will struggle to pick up this year,Reuters reported,citing data of market research firm Rho Motion.
The real dilemma of the US EV industry lies in the divergence between policy guidance and market realities.Trade policies have become shackles restricting innovation due to the excessive emphasis on"localization."
A real breakthrough for the US EV industry requires coordinated progress in policy,industrial chain localization,platform-based cost reduction,technological route selection,and international capacity layout.A single vehicle model cannot solve this complex predicament alone,but it can become a factor in driving changes.In the global race toward electrification,true competitiveness arises not from artificial supply chain fragmentation but from efficient integration of global resources.Chinese EVs'strength lies precisely in their cost control capabilities and rapid technological competencies in an open market environment.
