Ford (F.US) has announced a strategic shift in its electric vehicle strategy, prioritizing the development of hybrid vehicles in the future.
1min read On Wednesday, Ford Motor (F.US) announced it would take additional steps to make its electric vehicle business “profitable, capital efficient and growing.” The new electric vehicle plan includes a reimagined North American vehicle lineup to deliver a series of electrified options designed to accelerate customer adoption, including lower prices and longer range.
As part of its all-electric product portfolio, Ford will prioritize the launch of a new digital advanced commercial vehicle in 2026, followed by a new advanced pickup truck in 2027, and other future affordable vehicles. Ford also restructured its U.S. battery procurement plan to reduce costs, maximize capacity utilization and support current and future electric vehicle production.
As part of a reboot strategy, Ford will delay the opening of a new plant in Tennessee to produce its next-generation all-electric pickup truck and cancel plans for a three-row SUV. Looking ahead, Ford plans to prioritize the development of hybrid vehicles in 2026, followed by all-electric commercial vehicles like its new digital advanced commercial vehicle, and then pickup trucks in 2027.
The Detroit automaker said the electric vehicle market was rapidly developing as its Chinese competitors leveraged their cost advantages, including vertical integration, low-cost engineering, advanced multi-energy battery technology and digital experiences, to expand their global market share. The report also emphasized that electric vehicle buyers were more focused on cost than early adopters, and viewed electric vehicles as a practical way to save on fuel and maintenance.
“With price and margin compression, we decided to adjust our product and technology roadmaps and industrial footprints to achieve our goal of EBIT in the first 12 months after each new vehicle launch,” said John Lawler, Ford’s chief financial officer.
Ford’s decision also drew interest from other major automakers, including General Motors (GM.US), Toyota (TM.US), Nissan (NSANY.US), Honda (HMC.US), Tesla (TSLA.US) and Rivian Automotive (RIVN.US). Ford Motor shares were up 1.6% to $10.85 at the time of publication.
