Ford's EV Strategy is Changing

Recently Ford announced plans to scrap the production of large full electric SUV’s and trucks and move to hybrid-based models.

After repeated delays, the three large SUV’s, - Bronco, Explorer, and Expedition electric SUV’s will be killed off and next the generation Ford full-size EV truck is now delayed for the near future.

The news was first reported by some of the American media and other information posted on the internet which we have spotted. This change in strategy is no surprise to many close to the Ford Motor Company.

Ford’s CEO, Jim Farley had come to the realisation that while the large SUVs are hugely profitable when they have a petrol or diesel combustion engine, the electric alternative is proving to be a huge revenue loss when powered by expensive batteries and electric motors.

This plan reversal has led to Ford’s decision to focus on smaller and more affordable EV’s instead. However, this may be reconsidered at some time in the near future.

The first vehicle on the new platform will be a midsize pickup in 2027. Ford first talked about electric versions of the Ford Explorer and Lincoln Aviator years ago, with a projected 2025 launch date. But no concepts were ever shown, and the programme kept being pushed back time after time.

Some of the delays came with changes in where they would be built, from plants in Mexico, USA, and Canada. The latest delay was announced recently when Ford said the timeframe for the big SUVs would be further delayed by another two years to 2027. Now the company says the electric SUV program has been scrapped altogether.

We are seeing that Ford’s focus is moving to a line-up of hybrid electric and petrol/diesel powered SUV’s. Ford is reported to be considering building an extended-range hybrid, similar to the 2025 Ram 1500 Charger.

The Ram Charger is a vehicle that Stellantis has received some positive feedback from the market for its extensive power and drivable distance.

What it has onboard is the petrol-fed electric generator providing a better electric motor range.

Officially Ford is keen to offer their new hybrids with a longer range as well as better power options.

Peak EV take-up appears to be behind us with a worldwide slowing demand for this technology, Ford is also holding back the launch of the next generation of its electric full-size pickup trucks.

This will be the perfect opportunity to remove costs by building customised electric trucks, as opposed to the modification of the best-selling F-150 other than the poor selling Lightning.

This should give Ford more time to develop lower-cost and more efficient batteries.

The new trucks are now expected in late 2027, if this strategy remains in place. In the heady days of EV projections, Ford had a goal of producing 2 million EV’s a year globally by the end of 2026 and take over as the top producer of EV’s in the world.

Now Ford’s plan for 2024 is to focus on hybrids to stave off the unstainable losses of their EV vehicle line-up. Ford recorded a $1.3 billion operating loss for its EV and software division in the first 3 months of 2024. It’s projected that this section of Ford would sustain a pre-tax loss of between $5 billion to $5.5 billion in 2024.


October 2024