Ford's Trucks and SUVs: A Blueprint for Sustainable Growth in a Shifting Automotive Landscape

Ford Motor Company has long been synonymous with American automotive might, and its recent success in the truck and SUV segments underscores a strategic pivot that may secure its relevance for decades. As the global automotive market evolves toward electric vehicles (EVs) and premium segments, Ford's focus on hybrid and ruggedized offerings has positioned it as a leader in a market where trucks and SUVs now dominate over 50% of the U.S. car parc. But is this growth sustainable? The data suggests it could be—if Ford navigates its remaining hurdles.

The Engine of Growth: Trucks and SUVs

Ford's crown jewel remains its F-Series pickup trucks, which have held the title of America's best-selling vehicle for 48 consecutive years. In 2024, the F-150 Hybrid and plug-in hybrid variants accounted for 43% of F-Series sales, a testament to the company's hybrid strategy. The all-electric F-150 Lightning, while trailing Tesla's Cybertruck and GM's Hummer EV in sales, has carved a niche in the premium EV market, contributing to a 39% year-over-year sales surge in 2024. Meanwhile, the Bronco family—bolstered by the Bronco Raptor's 418-horsepower engine and the compact Maverick pickup—has driven a 38% sales increase for Bronco models in late 2024.

SUVs like the Explorer, which became America's top-selling three-row SUV in 2024 with 194,094 units sold, and Lincoln's Nautilus and Aviator, which together grew sales by 56%, highlight Ford's dual focus on mainstream and luxury markets. This breadth has enabled Ford to claim a 14.3% U.S. market share in Q2 2025, its highest in years.

Strategic Leverage: Hybrids, Software, and Pricing

Ford's hybrid offerings are a masterstroke in an era of fluctuating fuel prices and regulatory pressures. Its hybrid trucks captured 76% of the U.S. hybrid truck market in 2024, with the F-150 Hybrid alone selling 73,845 units. This strategy has insulated Ford from the slowdown in pure-EV adoption, which grew just +7.3% in 2024 after initial post-subsidy booms.

The company's Ford Pro Intelligence platform, which now serves ~750,000 subscribers through fleet management and over-the-air updates, adds recurring revenue streams—a critical buffer in an industry plagued by volatility. Meanwhile, aggressive incentives like its “employee pricing” promotion in 2024, which extended into 2025, have helped Ford undercut competitors like GM and Stellantis, boosting market share.

Challenges and Risks

Ford's EV ambitions, however, lag behind peers. Its E-Transit van sales plummeted 87.7% in early 2025 due to supply chain bottlenecks, while EV losses totaled $5.08 billion in 2024. Competitors like GM's Ultium platform and Tesla's scale advantage loom large. Additionally, 25% tariffs on Mexican-made vehicles added $1.5 billion to Ford's costs in 2024, forcing price hikes on models like the Bronco and Maverick—a trend that could deter cost-sensitive buyers.

Investment Implications: A Balanced Outlook

Ford's truck and SUV dominance, hybrid leadership, and inventory discipline justify cautious optimism. The F-Series and Bronco lineup are cash cows with high margins, while Lincoln's luxury growth and software services provide diversification. However, investors must weigh these positives against unresolved EV execution risks and geopolitical headwinds like trade tariffs.

Recommendation: Ford's valuation—currently trading at a P/E ratio of 12.5x (vs. industry average 14x)—offers a margin of safety. Investors with a 3–5-year horizon should consider a position, particularly if tariffs ease or EV supply improves. However, those focused on pure EV plays may prefer GM or Tesla, where innovation is outpacing execution at Ford.

Conclusion

Ford's ability to balance its legacy strengths in trucks/SUVs with incremental EV progress suggests it can sustain its market leadership. Yet, the road ahead requires overcoming EV cost hurdles and supply chain challenges. For now, Ford remains a “value” bet in an industry transitioning to premiumization and electrification—a company leveraging its strengths while navigating a shifting landscape.

Final Take: Ford (F) is a hold for investors seeking stability in the automotive sector, but EV risks demand close monitoring.