Ford revises electric vehicle strategy, emphasises hybrid expansion
Photo courtesy of Ford Motor Company

Ford revises electric vehicle strategy, emphasises hybrid expansion

Ford Motor Company is adjusting its electric vehicle (EV) production timeline and expanding its hybrid offerings in response to market dynamics and technological developments. The Detroit automaker announced a shift in its EV plans, delaying the launch of a new all-electric large SUV and pickup truck while committing to offer hybrid options across its entire North American lineup by 2030.

The three-row electric SUV, initially slated for production in 2025 at Ford’s Oakville Assembly Plant in Ontario, Canada, is now rescheduled for 2027. The delay is intended to allow the consumer market for three-row EVs to further develop and to take advantage of emerging battery technologies. Similarly, the next-generation electric pickup, codenamed “T3,” has been pushed from late 2025 to 2026.

โ€œAs the No. 2 EV brand in the U.S. for the past two years, we are committed to scaling a profitable EV business, using capital wisely and bringing to market the right gas, hybrid and fully electric vehicles at the right time,โ€ said Jim Farley, Ford president and CEO. โ€œOur breakthrough, next-generation EVs will be new from the ground up and fully software enabled, with ever-improving digital experiences and a multitude of potential services.โ€

The automaker is also focusing on new plants, such as its “BlueOval City” campus in Tennessee, U.S.A., for EV production rather than transitioning current facilities that produce engine-powered vehicles. The Tennessee facility, part of a USD11.4 billion investment announced in 2021, is set to begin production of Ford’s next-generation all-electric truck in 2026.

In addition to its EV efforts, Ford plans to expand its hybrid electric vehicle offerings, with the goal of providing hybrid powertrains across its entire Ford Blue lineup in North America by the end of the decade. In the first quarter of 2024, Ford’s electric vehicle sales increased by 86%, and hybrid sales rose by 42% compared to the previous year.

The strategic shift comes as the automotive industry grapples with slower-than-expected EV adoption and high production costs. Ford’s “Model e” electric vehicle business reported a loss of USD4.7 billion in 2023, with expectations of continued losses in 2024.

Despite these challenges, Ford remains dedicated to its electrification goals, continuing construction of battery plants in the U.S. states of Michigan, Tennessee, and Kentucky, and developing future-generation EVs with a focus on sustainability and efficiency.