- Ford Motor Company has announced a major shakeup to its EV ambitions, with the company prepared to take a $19.5 billion hit to pivot to hybrids and extended range electric vehicles (EREVs) with less of a focus on pure electric models.
- With that in mind, its fully-electric pickup truck, the F-150 Lightning, is set to be scrapped, replaced with an EREV variant which combines fully-electric power delivery with a petrol generator assisting range.
- In Europe, Ford still remains committed to a number of fully-electric vehicles, including two upcoming models built in collaboration with Renault Group.
Ford reverses on some EV ambitions
Announced this week, Ford Motor Company will undergo a radical redesign of its powertrain lineup, with less of a focus on fully-electric vehicles and a broader strategy of multiple forms of electrification: from hybrids, extended range EVs (EREVs), and also pure EV models. Ford says the changes will be necessary in order for its ‘Model e’ division to finally turn a profit by 2029, after the EV division has seen continuous losses.
In a raft of changes, this also includes the discontinuation of the current generation of its flagship fully-electric pickup truck, the F-150 Lightning. This model was launched less than four years ago. In its place, the next generation F-150 Lightning will become an EREV, with a fully-electric powertrain supported by a gasoline generator – offering a range of 700 miles. Despite other trucks such as the Rivian R1T and Tesla Cybertruck being fully-electric, the EREV will be the only option – with no full EV variant on the horizon.
When it comes to batteries, Ford is also launching a new business on the back of this strategy change, which will produce lithium-ion batteries for battery energy storage – with the manufacturer forecasting a high demand for these storage systems from both growing data centres and the energy grid.
There are also some changes in Europe. A planned electric commercial van for Europe will now be scrapped, although the firm will still offer its existing range of fully-electric vans in Europe (such as the E-Transit and E-Transit Courier). Ford still remains committed to a number of EVs on the European market, including its Explorer and Capri, along with two upcoming electric models coming out of a manufacturing and parts sharing collaboration with Renault Group.
Ford pivots from EVs to EREVs. Will the rest of the North American auto industry follow?
Part of the reason we’re seeing some of these EV reversals, particularly in the North American market, is down to the removal of many EV-boosting policies that were in place during the USA’s previous Biden administration. Gone is the $7,500 EV tax credit, driving down US demand, whilst mandated fuel economy standards for cars are also being rolled back.
Ford joins a number of manufacturers already offering drivetrains such as EREVs alongside fully-electric models. On a global level, it’s a strategy that BYD is pushing heavily, whilst newcomer American EV brand Scout will also offer an EREV option on its upcoming models. Still, there’s two key EV players in the USA who remain committed to fully-electric vehicles. Both Tesla and Rivian show no signs of compromising with hybrid models, with the two firms remaining fully committed to EVs only.
Ford president and CEO, Jim Farley, commented on the strategy shift:
“This is a customer-driven shift to create a stronger, more resilient and more profitable Ford. The operating reality has changed, and we are redeploying capital into higher-return growth opportunities: Ford Pro, our market-leading trucks and vans, hybrids and high-margin opportunities like our new battery energy storage business.”
