Trystan Casey
Ford Motor Company has been committed to electrifying its vehicle lineup, with a focus on small and medium-sized EVs that are more economically viable. In 2024, Ford scrapped plans for an all-electric SUV, citing consumer preference for hybrids and the high costs associated with large batteries. Despite this, Ford remains dedicated to electrification, investing $22 billion globally by 2025 and aiming for a fully electric passenger vehicle range in Europe by 2030. The company is also developing new electric vehicles, such as the Mustang Mach-E and F-150 Lightning, while exploring hybrid options to meet customer demands and reduce CO2 emissions.
| Characteristics | Values |
|---|---|
| Ford's plan for electrification | Ford is investing at least $22 billion in electrification through 2025 |
| Ford's passenger vehicle lineup in the EU | All electric by 2030 |
| Ford's commercial vehicle range | Zero-emissions capable, all-electric or plug-in hybrid by 2024, with two-thirds of sales expected to be all-electric or plug-in hybrid by 2030 |
| Ford's electric vehicle strategy in North America | Focus on hybrids due to consumer demand for affordability and longer ranges |
| Ford's electrification roadmap | Focus on small and medium-sized EVs that are more economically viable |
| Ford's new electric vehicle model | To be produced at the Louisville assembly plant |
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What You'll Learn
Ford's focus on small and medium-sized EVs
Ford has been undergoing a restructuring process in Europe, which has seen the company return to profitability. As part of this restructuring, Ford has committed to a fully electric future for its passenger vehicles in the EU by 2030. In the shorter term, Ford has committed to making its entire commercial vehicle range zero-emissions capable, all-electric, or plug-in hybrid by 2024.
Ford's electrification roadmap has seen the company focus on small and medium-sized EVs that are more economically viable than large, battery-electric models. Large electric vehicles are expensive to produce, due to the need for very large and costly batteries. Retail customers are unwilling to pay a premium for these large EVs, making them a poor business case. Instead, Ford is focusing on small and medium-sized trucks and SUVs, which require lower-cost batteries and are more suitable for daily commuters.
Ford's CEO, Jim Farley, has stated that smaller, cheaper EVs are needed to compete with Chinese automakers and turn around Ford's loss-making electric vehicle arm. Ford is delaying planned three-row electric vehicles in favor of focusing on smaller, more affordable EVs. The company is also investing at least $22 billion globally in electrification through 2025, nearly twice its previous EV investment plans.
Ford's current electric vehicle offerings include the Mustang Mach-E and the F-150 Lightning pickup, with the 2025 model of the latter promising to "inspire" with its features, performance, and design. Ford also offers the 2024 E-Transit van, which offers three different vehicle lengths and roof heights, and the 2024 Maverick Hybrid, a pickup truck.
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Ford's plan to scrap all-electric SUV
Ford has scrapped its plan to produce an all-electric SUV, opting to produce a hybrid version instead. The company has cited consumer demand for affordability and longer ranges as the reason for this change, with large batteries bringing large costs. This strategic shift reflects Ford's new requirement for any vehicle to become profitable within 12 months of its launch date, a challenging feat for an all-electric three-row SUV.
Ford has stated that it will continue to sell its current fully electric vehicles, including the Mustang Mach-E and the F-150 Lightning pickup, along with commercial vans. The company has also reiterated its commitment to electrification, especially in Europe, where it plans to have a fully electric passenger vehicle lineup by 2030.
The decision to scrap the all-electric SUV plan comes as Ford tries to improve its numbers in the EV market. The company has been losing money on every EV it sells and has had to scale back sales projections. Ford's leadership has attributed this to the tremendous competition in the SUV segment and the cooling EV market on the consumer side.
Ford is not alone in adjusting its plans, as GM and Tesla have also experienced production cuts. The shift from full EV to hybrid offers more flexibility in terms of production and consumer demand. Ford's vice-chair and chief financial officer, John Lawler, has stated that hybrid technologies are the best solution for customers seeking a three-row SUV.
Despite this setback, Ford remains committed to electrification and is taking steps to improve its electric vehicle offerings. The company has invested at least $22 billion globally in electrification through 2025, nearly twice its previous EV investment plans. Ford is also working with LG Energy Solutions to shift production of batteries for its Mustang Mach-E SUV to the US to qualify for steep subsidies under the Inflation Reduction Act.
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Ford's investment in electrification
Ford Motor Company has been investing heavily in electrification and electric vehicles (EVs). In 2018, the company announced plans to invest $11 billion in electrification by 2022 and have 40 hybrid and fully electric vehicles in its model lineup. However, in 2024, Ford scrapped its plans for an all-electric SUV, citing consumer demand for hybrids and the high cost of large batteries. Despite this setback, Ford remains committed to electrification and has since broadened its electrification strategy to reach more customers and improve profitability. The company plans to introduce a new digitally advanced commercial van in 2026, followed by two new advanced pickup trucks in 2027, with a focus on small and medium-sized EVs that are more economically viable.
Ford's electrification efforts are not limited to North America, as the company has also made significant investments in Europe. In 2020, Ford reported a return to profit in Europe and announced an investment of at least $22 billion globally in electrification through 2025, nearly twice its previous EV investment plans. Ford is committed to making its passenger vehicle lineup in the EU all-electric by 2030. By mid-2026, the company aims for 100% of its passenger vehicle range in Europe to be zero-emissions capable, all-electric, or plug-in hybrid.
Ford's electrification strategy also includes partnerships with other companies. "Team Edison", a dedicated team within Ford, aims to identify and develop electric-vehicle partnerships with suppliers and other companies. These partnerships will help Ford bring more electrified vehicles to market and meet the growing consumer demand for EVs.
Overall, Ford's investment in electrification is significant, with the company committing billions of dollars to EV technology, infrastructure, and partnerships. By broadening its electrification strategy and investing in new vehicle models, Ford aims to reach more customers, improve profitability, and reduce carbon emissions.
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Ford's electric vehicle sales
Ford has been investing in electrification, with a $22 billion global investment plan through 2025, which is nearly twice its previous EV investment plans. In 2024, Ford's US retail sales grew at double the industry pace, with a 6% growth rate, driven by trucks, hybrids, and electric vehicles. The company's total electrified vehicle sales (HEV, PHEV, and electric) reached a record 285,291, a 38% increase year over year, outselling GM and Stellantis.
However, Ford has faced challenges with large electric vehicles, such as trucks and SUVs, citing "unresolvable" economic issues. As a result, the company has shifted its focus to small and medium-sized EVs, which are more economically viable. Ford has also emphasised the importance of hybrids, citing consumer demand for affordability and longer ranges.
Ford remains committed to electrification, particularly in Europe, where it plans to have a fully electric passenger vehicle lineup by 2030. The company's commercial vehicle range is also expected to be zero-emissions capable, all-electric, or plug-in hybrid by 2024, with two-thirds of commercial vehicle sales projected to be all-electric or plug-in hybrid by 2030.
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Ford's electric vehicle strategy for North America
Ford has committed to investing at least $22 billion globally in electrification through 2025, nearly doubling its previous EV investment plans. This includes the development of new electric vehicles, such as the Mustang Mach-E, F-150 Lightning, and E-Transit, which are currently available in the US. Ford also plans to introduce a new electric commercial van in 2026, followed by two new electric pickup trucks in 2027. These vehicles will be produced in Ohio, Tennessee, and Louisville, Kentucky, with the latter undergoing extensive retooling to accommodate the new EV model.
However, Ford has scrapped its plans for a three-row all-electric SUV, citing consumer demand for more affordable and fuel-efficient options. The company has expressed that it will focus on manufacturing hybrids, plug-in hybrids, and PHEVs instead of going "all-in" on battery-electric models. This decision is influenced by the high costs associated with large batteries required for larger vehicles, making them economically unviable. Ford also faces competition from Chinese automakers in the EV market, further impacting its strategy.
Ford's strategy for North America involves a broader approach to electrification, aiming to provide customers with a range of options that meet their needs and preferences. The company is committed to reducing carbon dioxide emissions and delivering innovative, cost-efficient vehicles. Ford's plan for growth and value creation, Ford+, combines existing strengths with new capabilities to enhance customer experiences and deepen their loyalty.
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Frequently asked questions
Yes, Ford does plan to go all-electric. In 2020, Ford announced that it was investing at least $22 billion globally in electrification through 2025. Ford's passenger vehicle lineup in the EU will be all-electric by 2030.
Ford's electrification strategy includes adjusting its North America vehicle roadmap to offer a range of electrification options designed to speed up customer adoption, including lower prices and longer ranges. Ford also plans to leverage hybrid technologies for its next three-row SUVs.
Some of Ford's electric vehicles include the Mustang Mach-E, the F-150 Lightning, and the E-Transit.
