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.

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“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.

A new chapter has been written in Toyota’s love-hate relationship with EVs. The company finally seems to be embracing the way of battery-electric, albeit slowly, with the introduction of the all-new C-HR+ alongside their initial toe-in-the-water experiment of the bZ4X that is currently known as the bZ.

Likely in an effort to up its game, a new report claims that Toyota will be increasing its European EV production as early as 2028, with the company’s Czech Republic facility set to become an electric vehicle manufacturing hub. A lofty target of 100,000 EVs per year is being touted for the new facility, according to Nikkei Asia.

Read: Subaru Plans To Win Europe With Rebadged Toyotas, One Of Which Is An E-Outback

This move follows Toyota’s broader commitment to offering a comprehensive lineup of 14 EV models in Europe by 2026, including the upcoming electric versions of the C-HR+ and Urban Cruiser,and the updated bZ crossover.

Localizing EV Production To Europe

The decision to localize EV production aligns with Toyota’s long-term sustainability goals and the European Union’s upcoming ban on new combustion engine vehicle sales by 2035. Despite a recent 1% dip in European EV sales, electric vehicles maintain a significant market presence, accounting for 15.4 percent of new car sales in the Old Continent.

The decision to make EVs in Europe makes more sense when you realise that the market for battery electric cars is much larger than in Japan. There, EVs make up only 2 percent of new car sales.

Meanwhile, Toyota, like many legacy manufacturers, is feeling the pressure from Chinese manufacturers, including the likes of BYD, Jaecoo, and Xpeng, which collectively hold a 5.1% share in Europe.

A Sign Of Things To Come

Despite Toyota’s traditionally cautious outlook, its new plan is indicative of a broader change in the industry. Some may say that it’s also a move being made to address the growing demand for electric options in Europe, as well as the regulatory landscape and the looming ICE ban.

However, even though the company will be bringing more EVs to the market, don’t expect a seismic shift in its strategy, as it will continue to be cautious regarding fully electric vehicles due to practical challenges like battery weight and range limitations. Rather than a full-on pivot towards EVs, Toyota is likely to integrate more hybrid solutions and range-extender technologies to maintain real-world usability and appeal, especially for larger vehicles.

The Honda Civic Type R is dying in Europe. But rather than mourn the badge’s demise, Honda is seemingly already looking ahead to the future, and that could very well involve electrification.

Whether the injection of electricity comes in the form of a hybrid or a full-blown EV, similar to Hyundai’s Ioniq 5N, remains to be seen. Currently, the Civic Type R is leaving European shores due to its non-conformance with the new EU mandate of the GSR2 legislation, which requires the installation of driver monitoring technology.

An Electric Future May Be On The Cards

While the FL5-generation Type R is winding down in Europe, it will continue to be available in the US and Japan for the foreseeable future. If it were to return, likely in a new generation, could it become an EV?

Read: Honda Kills Its Hottest Car In Europe But It’s Not Going Quietly

Well, while speaking to AutoExpress at the recent launch of Honda’s new Prelude, project leader Tomoyuki Yamagami hinted that the future of Type R isn’t bound to its ICE heritage. In his words, “Type R can be anything in the future, depending on what the market demands…Type R is not dependent on a turbo powertrain,” emphasizing that the essence of the badge lies in maximizing dynamic performance, not strictly in the specifics of its powertrain.

That view certainly aligns with what Honda’s BEV Center revealed at CES earlier this year. There, Toshihiro Akiwa, head of Honda’s BEV Development, elaborated on what a possible electric Type R may hold in store.

Electric motors change the equation. There’s no high-revving VTEC, no turbo spool, and none of the usual auditory cues enthusiasts associate with performance. Akiwa says the challenge is how to translate these characteristics into a thrilling driving experience that remains true to the Type R spirit: “It’s not just about power, it’s about the sound, vibration, acceleration, and human experience. These are the joys of driving.”

Next-Gen Platform Is Already in Motion

Honda’s push into electrification kicks off in earnest with two new EVs, the 0 Series saloon and midsize SUV, set for production in 2026. These will be the first of seven new models built on Honda’s next-gen electric platform.

While Type R variants of these models haven’t been officially confirmed, the platform is expected to support power outputs of up to 480 hp, leaving plenty of headroom for a future electric hot hatch to make its mark.

A decade ago, Honda and Sony partnering with each other would have resulted in a Gran Turismo concept at best. However, today it has translated into the sleek-looking Afeela Joint EV project. But there’s one problem: before even selling a single car, Sony Honda Mobility has posted an operating loss of approximately $362 million (¥52 billion).

It’s not just a matter of pre-launch development expenses either. According to recently released financial disclosures, losses more than doubled compared to last year’s ¥20.5 billion deficit, highlighting just how expensive it is to play catch-up in the premium EV market. Set to debut later this year, the Afeela will command a starting price of $89,900, a clear sign of the market positioning the joint venture targets, but also underscoring the challenges of recouping such heavy upfront investments.

A Challenging Entry

Any new car launch is going to incur losses to begin with; that’s practically a given. And with Honda and Sony’s war chest seemingly well-stocked (combined, the two Japanese companies pocketed over ¥2.6 trillion in operating profit last fiscal year), it’s unlikely that the project will put either at financial risk.

Read: Watch Sony Exec Drive Afeela EV With A PlayStation Controller

But the market Afeela will be entering won’t be without its hurdles. Analysts suggest that luxury electric vehicles, while highly attractive to premium buyers, typically come with high development costs: think extensive R&D, complex software integrations, and the pricey task of prototype building. Bloomberg Intelligence analyst Tatsuo Yoshida points out that although the high sticker price of the Afeela aims to offset these expenses, fully covering these substantial costs through sales alone might prove challenging.

Late To The Party

Adding to the complexity, the Afeela will launch into a market where Tesla, Mercedes-Benz, BMW and other established players already dominate (and that’s without mentioning the Chinese, of course…) , making Sony and Honda’s mission to carve out their own niche all the more difficult. But both companies remain confident, banking on a combination of Honda’s proven engineering expertise and Sony’s strength in software and entertainment tech to win over buyers.

Whether the Afeela becomes a hit or remains an ambitious footnote, the venture highlights one thing clearly: even for giants like Sony and Honda, the transition to electric luxury is neither cheap nor easy.