Ford Shifts Focus from Large EVs: ‘Driven by Customer Choices’ | PRIMENEWSNOW

Ford’s Strategic Shift: Emphasizing Hybrid Vehicles Over Electric

• Ford is scaling back its electric vehicle production, incurring nearly $20 billion in costs.
• The company is pivoting towards hybrid vehicles due to rising demand.
• Ford’s CEO attributes this shift to evolving customer preferences.

Reevaluating Electric Vehicle Production

Ford is making a significant transition away from certain electric vehicles. In a recent announcement, the company revealed plans to deprioritize large electric models that have not been financially viable.

“Ford will no longer pursue the production of select larger electric vehicles due to diminished demand, high costs, and regulatory shifts,” the company stated.

Additionally, Ford is halting the development of electric commercial vans intended for the US and European markets, opting instead to expand its hybrid vehicle lineup.

Hybrid Vehicles: The New Focus

By 2030, Ford aims for hybrids, extended-range EVs, and electric vehicles to constitute about 50% of its global sales, a significant increase from the current 17%.

In an interview with Bloomberg, CEO Jim Farley explained, “The shift was driven by customers changing their preferences.”

In November, Ford experienced a 30% rise in hybrid sales, while demand for its pricier EVs declined, though more affordable models performed better.

Market Dynamics and Future Plans

The US EV market’s share dropped from 12% to 5%, a decisive factor in Ford’s strategy. Instead of large EVs, Ford plans to introduce a “high-volume family of smaller, efficient, and affordable electric vehicles,” starting with a midsize pickup truck in 2027.

This strategic pivot is expected to cost Ford approximately $19.5 billion, with most of the financial impact occurring this quarter.

Despite these changes, Ford’s stock price has remained stable, showing a 38% increase since the year’s start.

Regulatory and Production Adjustments

The rollback of incentives, such as the $7,500 EV tax credit, has influenced the EV sector. In October, Ford announced plans to boost F-150 pickup production by 50,000 units in 2026, reallocating some EV workers to achieve this goal.

Ford also decided to pause the production of the electric F-150 Lightning to prioritize gas and hybrid models.