DEARBORN (WWJ) --Ford is making big changes in its product plans, with a vision that’s less reliant on electric vehicles and more reliant on hybrids.
“This is a customer-driven shift to create a stronger, more resilient and more profitable Ford,” said Ford president and CEO Jim Farley. “The operating reality has changed, and we are redeploying capital into higher-return growth opportunities: Ford Pro, our market-leading trucks and vans, hybrids and high-margin opportunities like our new battery energy storage business.”
Ford is still converting a plant in Kentucky to make a new generation of low cost electric vehicles. But the new plant it’s building outside Memphis will no longer be dedicated to EVs. It will build pickups instead and be named the Tennessee Truck Plant.
“We are looking at the market as it is today, not just as everyone predicted it to be five years ago.” says Andrew Frick, president of Ford Blue and Ford Model E–the company’s business segments dedicated to gasoline and electric vehicles.
Model E has been losing billions of dollars a year. Frick says these changes should allow it to turn a profit by 2029.
“We took a look at the entire landscape and obviously saw a notable, more recent change. We’ve been working on a plan to strategically redeploy the capital and resources to build a more profitable and more durable business and play to our strengths.”
Ford will take a 19.5 billion dollar charge against its 2025 earnings to pay for these changes.
As part of today’s announcement, Ford confirmed the end of production of its F-150 Lightning electric pickup truck. It will be replaced, at some point in the future, with a pickup that will carry the same name, and runs on electricity. But it will have a gasoline powered recharger on board, which will allow it to keep going when the battery runs down. The industry calls these “extended range electric vehicles.”
"The F-150 Lightning is a groundbreaking product that demonstrated an EV pickup can still be a greatF-Series," said Doug Field, Ford's chief EV, digital a nd design officer. "Our next-generation F-150 Lightning EREV will be every bit as revolutionary. It delivers everything Lightning customers love – near
instantaneous torque and pure electric driving. But with a high-power generator enabling an estimated range of 700+ miles, it tows like a locomotive. Heavy-duty towing and cross-country travel will be as
effortless as the daily commute."
Electric pickup trucks have not sold in the numbers many expected. Ford’s Andrew Frick feels moving to an extended range platform will make their pickups appeal to more potential buyers.
“We believe that the extended range electric vehicle will be the best solution for them because of the uncompromised towing and extended ranges.”