Ford said it will significantly reduce its investment in fully electric vehicles and instead focus more heavily on hybrids and extended-range electric vehicles (EREVs), cancelling several planned battery-electric models and reassigning production at multiple plants. The strategy shift is expected to cost the automaker about $19.5 billion.
Building on a hybrid strategy outlined in 2024, Ford said it now expects around half of its global vehicle volume to come from hybrids, EREVs and fully electric vehicles, compared with about 17% previously. The company said it will pursue a three-pronged hybrid approach covering economy-focused models, performance-oriented vehicles and hybrids capable of providing exportable power.
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Ford plans to introduce EREV powertrains for larger trucks and sport utility vehicles, citing customer demand for towing capability, range and overall utility. By 2030, the automaker aims to offer either a hybrid or multi-energy powertrain across nearly its entire lineup. It also said it plans to launch five new “affordable” vehicles by 2030, four of which are expected to be built in the United States.
As part of the shift, Ford confirmed it is cancelling several fully electric vehicle programs in North America that are not based on its Universal EV platform. Production of the current Ford F-150 Lightning will end, and the next-generation fully electric version of the pickup has been shelved in favor of a Lightning-branded EREV. The Dearborn Truck Plant will add a third shift to support increased production of gasoline and hybrid F-150 models.
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Ford also said it has cancelled two fully electric commercial vans, one intended for Europe and one for North America. The North American model was widely expected to be the next-generation E-Transit. Instead, the company plans to introduce a new, lower-cost commercial van with gasoline and hybrid powertrain options, to be produced at the Ohio Assembly Plant starting in 2029.
The Tennessee Truck Plant, which had been slated to build the next-generation F-150 Lightning, will now produce “all-new Built Ford Tough truck models” beginning in 2029. Ford did not specify the models but said they would align with its revised product strategy.
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In addition to changes in vehicle production, Ford said it will expand into residential energy storage. The company’s Kentucky battery plant will pivot to manufacturing batteries for energy storage applications, with a planned investment of $2 billion to scale the business. The BlueOval Battery Park Michigan facility will also support residential battery storage, while continuing to produce batteries for a Ford electric pickup scheduled for launch in 2027.
