Ford Shifts Gears On EV Strategy To Focus On Lighting-Up Hybrids
According to a Ford press release, the auto maker is intent on growing its electric vehicle business while offering even more propulsion choices for potential buyers. For the time being, while it seems like current EV models will continue to be produced and supported, Ford's apparent new EV roadmap will consist on only a handful of new vehicles. To wit, for 2026 there will be a "digitally advanced" commercial van, followed by two electric pickup trucks in 2027 (one codenamed "Project T3," an all-new mid-sized truck being developed in California).
The brief also mentions "other future affordable vehicles," and we have to wonder, does that mean smaller urban EVs as opposed to the ever-growing electric behemoths on roads today? Chinese automakers like BYD and MG continue to prove that they can make fantastic EVs for cheap, so it's conceivable that Ford's future plans could involve tapping into foreign partnerships to bring exciting, small EVs to the American market. In the immediate future, Ford is refining battery cell production to keep losing money on making EVs, such as having batteries produced in the U.S. to take advantage of Inflation Reduction Act benefits.
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In an interesting shift of stance, Ford also announced that it will use hybrid tech to ensure it continues to play its role in reducing CO2 emissions. To prove the point, a once fully-electric three-row SUV project is being scrapped for a plug-in hybrid instead. The next generation F-150 and Maverick will be offered as plug-ins.
These shifts will not come easy or cheap for Ford, however. The automaker will be forced to write-down $400 million of current assets pertaining to its electric three-row SUVs, while requiring an additional $1.5 billion for expenses and cash expenditures.
According to reports, Ford lost $2.46 billion on EVs in the first half of this year alone, but nonetheless Ford still believes there's a place for EVs, even if not as large-scale as before. Ford Chief Financial Officer John Lawle said in a statement (PDF), "we’re committed to creating long-term value by building a competitive and profitable business," and revealed that its annual EV development budget for EVs is still significant at 30 percent, as opposed to the current 40 percent.
