Ford announced several changes to its gas- and electric-powered vehicle business, aimed at dramatically increasing hybrid vehicle production in the face of slowing EV sales. The automaker will also introduce some new products as part of the plan, including an extended-range EV version of its F-Series truck and battery storage system to meet the growing demand for AI data center manufacturing.
The news comes as Ford faces years of compounded losses from its struggling EV business. The 122-year-old company once had aspirations of overtaking Tesla in battery-electric vehicle sales, but high material costs and declining demand have scuttled that goal in financial trouble. Over the past two years, the company’s EV division, the Ford Model E, has lost more than $12 billion, with EV sales down more than 60 percent in November alone. Now, Ford says he’s ready for change once again.
Hybrids are going to be the main focus going forward, Ford said. The automaker expects gas-electric hybrids, extended-range electric vehicles (EREVs), and smaller, more affordable battery-electric vehicles to account for 50 percent of its global volume by 2030, up from just 17 percent today. Ford says it expects its hybrid and EV business to be profitable by 2029.
Hybrids are now going to be the major focus going forward
“Instead of spending billions on big EVs that no longer have a path to profitability, we’re allocating that money into entirely new opportunities like higher return areas, more trucks and vans, hybrids, extended-range electric vehicles, affordable EVs and energy storage,” said Andrew Frick, president of Ford Model E and Ford Blue.
Change will not be cheap. Ford says it expects to record a charge of $19.5 billion in 2025, the majority of which will occur in the fourth quarter. The company also expects to lose $5.5 billion in “cash impact”, most of which will be paid in 2026 and the remainder in 2027.
Nor will it come without major changes to Ford’s workforce. Ford recently agreed to end its partnership with South Korean battery maker SK On, which will result in the automaker taking full ownership of the BlueOval SK battery factory in Kentucky. As previously reported, that factory will be repurposed to make energy storage systems bloombergAt least 1,600 employees are expected to lose their jobs as a result, though Frick said more than 2,100 jobs are expected to be added over the years,
“It’s positive for jobs and also positive for how much we’re going to use those plants,” Frick said.
In terms of products, Ford is expected to replace its first-generation F-150 Lightning with an extended-range version that can travel up to 700 miles on a single charge. The EREV truck will be produced at Ford’s Rouge Electric Vehicle Facility in Dearborn, Michigan, with timing and starting price to be announced at a later date.
EREVs contain a small internal combustion engine to recharge EV batteries for greater range. They function as EVs, with electric motors driving the wheels, and batteries that can be plugged into an EV charger. The gas generator is intended to relieve any range concerns – or, for truck owners, towing capacity – that some customers may have about purchasing a full EV.
“It’s positive for jobs and also positive for how much we’re going to use those plants.”
The F-150 Lightning was once considered a key driver for widespread EV adoption in the US. After all, a battery-electric version of Ford’s best-selling truck was sure to be a big winner. But the high price, heavy battery, range and towing concerns of longtime truck owners kept the Lightning from being as successful as expected.
Frick said, “It’s been a great truck for many, and it remains the best-selling electric pickup, but we’ve also learned a lot from our first-generation EV, and we know that for many truck owners, pulling heavy loads over long distances is not a compromise. That’s why our next-generation F-150 Lightning will be an extended range EV.”
The elimination of the $7,500 federal EV tax credit at the hands of Donald Trump and the Republicans also played a role. But electric trucks have always been a hard sell, as the prices for their large, expensive batteries exceed what most consumers are willing to spend. And now Ford has invested heavily in an all-new EV platform for a more affordable model, making the F-150 Lightning no longer a good fit for the company’s future lineup.
Energy storage is another way Ford plans to repurpose its past EV investments. Since it won’t be building that many EVs in the near future, the company plans to use its prismatic lithium iron phosphate (LFP) batteries for everything from energy storage systems to powering data centers, among other uses. Lisa Drake, vice president of technology platform programs and EV systems, said energy storage “makes a lot of sense for us as a natural proximity.” Ford could expand that business to include battery storage products for residential use, but Drake said commercial customers will be the first and foremost.
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