Ford Motor (F) is positioning its new Universal Electric Vehicle, or UEV, platform, developed at its Long Beach center, as a key effort to cut EV losses, UBS said in a note Wednesday.
UBS analysts said they visited the "skunkworks" facility in California with Vice President of Advanced Development Projects Alan Clarke. It is the first time the company has opened the center to outside visitors, where leadership described it as operating more like an EV startup focused on speed, agility, innovation, and efficiency than a traditional automaker, according to the note.
The unit is central to Ford's UEV platform, which is key to reducing the more than $4 billion annual losses in its Model E EV business, with potential to improve earnings by about 40% if it reaches break-even, the analysts said, adding that key challenges ahead include scaling production and automation, matching product timing with demand, and transferring learnings across Ford's broader operations.
"In our view, the culture and processes being built there which was done completely separate from 'core' Ford is equally important. Scaling that culture and capabilities to the rest of Ford will be important but may also bring tension," the analysts said.
UBS has a buy rating and a $14 price target on Ford Motor.
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