A pivotal moment is approaching for Ford’s electric vehicle future, with the company preparing to unveil a major shift in its EV strategy on August 11. CEO Jim Farley described the upcoming announcement as a “Model T moment,” hinting at a potentially transformative direction for the automaker. “Our strategy is very simple,” Farley said, emphasizing a focus on profitability within specific EV segments.

While profitability is the keyword that will interest investors, could the reference to the company’s seminal model indicate that the Blue Oval’s EV announcement will focus on affordable, mass-produced motoring, much like the original model?

Lagging Behind China

In the past, Farley has been quite forthcoming with his admiration for Chinese tech, having daily driven a Xiaomi SU7 EV, and claiming it was “fantastic,” and that he was having a hard time giving it up. According to a report from Nikkei Asia, that same rhetoric was repeated on Tuesday’s earnings call, acknowledging that Ford lags behind its eastern rivals.

Read: Ford Bracing For A $2 Billion Blow From Trump’s Tariff Legacy

“We really see not the global OEMs as a competitive set for our next generation of EVs,” said Farley, likely referencing the likes of GM, Stellantis, and VW. “We see the Chinese companies like Geely and BYD…”We believe the only way to compete effectively with the Chinese over the globe on EVs is to go and really push ourselves to radically re-engineer and transform our engineering supply chain and manufacturing process.”

Ford is rethinking the entire EV manufacturing and supply chain approach, recognizing the need for a “radical re-engineering” of these processes to effectively counter Chinese automakers’ cost competitiveness and innovation pace.

In addition, Ford plans to rely heavily on partnerships as EV technology and supply chains rapidly commoditize. Farley noted that apart from the complex electrical architecture, differentiation in the EV sector is becoming increasingly difficult, making strategic alliances essential.

Tariffs, Tariffs, Tariffs

Farley also predicts a growing regionalization of the global automotive market, driven by tariff structures and local electrification and emissions regulations. He cited recent negotiations reducing auto import tariffs to 15% from the initially proposed 25%, seeing this shift as an “opportunity” for Ford. Despite facing around $2 billion in tariff-related expenses annually, primarily from imported components, Farley remains optimistic that Ford can leverage its status as a major American employer for potential policy relief and competitive advantage.

Ultimately, Ford’s new EV strategy reflects a broader industry reality: traditional automakers must swiftly adapt their operational and manufacturing strategies to navigate an increasingly competitive and geographically segmented automotive landscape.

Update: Lotus released a statement saying: “Lotus Cars is continuing normal operations, and there are no plans to close the factory. We are actively exploring strategic options to enhance efficiency and ensure global competitiveness in the evolving market.” They added, “Lotus remains committed to the UK, and its customers, employees, dealers, suppliers, as well as its proud British heritage.”

Lotus had a tough first quarter as they delivered 1,274 vehicles, which was a 42% decline from a year ago. The bad news continued with revenues of just $93 (£67.8 / €79.4) million, which was a year-over-year decline of 46%. The company also posted a net loss of $183 (£133.4 / €156.2) million.

That’s a bad showing, but Lotus confirmed their first plug-in hybrid model is coming later this year. It will have their 900V Hyper Hybrid EV technology, which was originally announced last November.

More: We Drove Lotus’ Electric SUV To See If It Can Silence Its Haters

At the time, the company said the Hyper Hybrid powertrain would deliver a combined driving range in excess of 684 miles (1,100 km). That’s a huge improvement over the Eletre, which has a WLTP range of between 254 and 373 miles (409 – 600 km) in the UK.

Besides talking about Hyper Hybrids, Lotus CEO Qingfeng Feng said “We remain closely attuned to evolving dynamics in key markets such as the U.S. and are actively evaluating strategic pathways as well as localization opportunities to further strengthen our presence and expand sales operations in the global markets.” That seems to have been a huge hint about the future of Lotus production.

In fact, Autocar is now reporting that production will end in Hethel and be moved to the United States. That would likely be the final nail in the coffin for claims about being a ‘British’ automaker.

The publication suggests Lotus production could be moved to Volvo’s plant in Ridgeville, South Carolina which currently builds the EX90 and Polestar 3. This would help the company get around Trump’s tariffs, even though the US and UK have already reached a trade deal. Despite that, Lotus told the publication Emira production has been paused since the middle of May as part of the “fallout from the increase in tariffs in its key market of the US.”

BBC News says the move is only under consideration at this point, but it could result in approximately 1,300 people losing their jobs. However, the Financial Times suggests the decision has already been made and implies the situation is dire as the company has reportedly “struggled to pay its suppliers in recent weeks.”

While Lotus has a lot of problems, one of the biggest appears to be that their customers aren’t interested in EVs. As Feng noted, “We … understand that a pure-electric sports car is not going to attract a lot of attention.” To get around this, the aforementioned Hyper Hybrid powertrain will be found in both lifestyle cars – like the Eletre and Emeya – as well as sports cars.