Ford is recalibrating its electric vehicle (EV) strategy, moving away from its all-electric vision to focus on hybrids.
This decision comes amidst a softening demand for EVs and increasing competition from Chinese automakers.
Ford's hybrid pivot
Despite significant growth in EV sales in the first quarter of 2024, Ford's chief financial officer, John Lawler, stated that the company is responding to market demand and "pivoting" away from its existing electric future. He emphasised that customers want choice, and Ford will provide a full lineup of EVs, hybrid, electric, petrol and diesel products.
Ford has also cancelled plans for higher-range all-electric SUVs with three rows of seats, which CEO Jim Farley once described as a "personalised bullet train". These SUVs will now reportedly be built as hybrids. The company also revealed that the first vehicle from its EV skunkworks team will be a midsize ute due out in 2027.
Lawler attributed the softening of EV sales to customers' "shifting requirements". He pointed out that the market is changing globally, with Chinese automakers at overcapacity.
Ford's focus, he said, is on being nimble, having a low cost, and being able to adjust to the evolving industry.
A plug-in hybrid (PHEV) version of the popular Ranger ute will also be making its way to New Zealand in 2025. It may offer up to 45km of electric-only range while retaining a 3.5-tonne towing ability.
Cost of early adoption
Early auto technology adopters have already purchased EVs, and automakers like Ford are struggling to persuade mainstream buyers to go all-electric.
The perceived higher cost of EVs, limited range anxiety and lack of charging infrastructure have become major deterrents. Ford has acknowledged that Chinese automakers have "advantaged cost structures" and are offering "multi-energy advanced battery technology".
In response, Ford is adjusting its rollout of pure electric vehicles to deliver a capital-efficient, profitable EV business.
Lawler emphasised that Ford will not launch any EVs in the future unless they can be profitable within 12 months. The company plans to introduce several new electric vehicles, including the EU-only Ford Explorer EV and the Capri. It is also delaying its T3 electric ute to the second half of 2027 and plans to introduce an all-new, fully electric commercial van in 2026.
Lawler reiterated Ford's focus on remaking the company into a high-growth, higher-margin, more capital-efficient, and durable business. He stressed that EVs need to turn a profit, and Ford will pivot and adjust as needed.