Ford Follows Tesla's Lead, Reworking Mustang Mach-E 'On The Fly'

Ford CEO Jim Farley said the automaker won't wait for model year changes to initiate software and hardware tweaks.

2021 Ford Mustang Mach-E

Steven Loveday

By: Steven Loveday

Feb 4, 2022 at 10:24am ET

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Ford has made it clear it will be tweaking its fully electric Mustang Mach-E crossover as needed. The goal is to increase profits, though any sort of software or hardware updates could be fair game as Ford works to change the way it has designed and manufactured it vehicles for many years.

According to a recent article published by Bloomberg, Ford CEO Jim Farley shared with analysts that the company doesn't plan to wait for traditional model year changes as it works to update the Mach-E. Instead, it's making changes "on the fly," not only via software updates, but also through hardware reengineering. The results are leading to cheaper production of the electric SUV in Mexico. Farley said on the automaker's Q4 2021 conference call:

“We are not going to wait for next year. We’re are going to reengineer that vehicle now, and then use that expertise for the F-150 Lightning."

Farley added that this will be the way Ford operates going forward, which is a huge departure from its past practices, as well as those of most rival automakers. However, Tesla has been handling its efforts this way for years. The US-based electric vehicle company is a leader in the realm of over-the-air software updates, and it often makes hardware changes on the fly as well. Farley admitted:

“We have learned so much about the lack of integration in our engineering operations as we compared our engineering on Mach-E to others that are best-in-class, and we are finding lots of profit opportunities. Being in the industry as long as I have, I haven’t felt this chance to take out so much cost after Job 1.”

Bloomberg notes that Farley used the Mustang Mach-E as an example, sharing that Ford had already reduced the EV's cooling system "hoses by one-third and cut the number of motors in half."

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Needless to say, CEO Farley explained that fewer parts lead to higher profits. He also said the new method of boosting "the bottom line" is the way forward for Ford. Farley recently shared in an interview that he's learned plenty from Tesla and Elon Musk, and that's becoming increasingly evident as Ford transitions its age-old practices.

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