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Ford updates EV strategy to speed customer adoption and remain profitable

Ford wants the world to know its latest electrification strategy

2024 Ford Mustang Mach-E.
Ford Motor Co. / Ford Motor Co.

Responding to customer response and financial realities, Ford Motor Company announced a shift in priorities in its vehicle electrification strategy. Ford is putting large EV development projects, such as a 3-row SUV, on the back burner and focusing on more affordable small and midrange EV and hybrid vehicles.

Ford isn’t alone in rethinking its commitment to the transformation from internal combustion engines. It’s also not the first time the Dearborn, Michigan-based company has gone public with its EV game book. In February, Ford CEO Jim Farley outlined the corporation’s plans to cover all bases producing ICE, all-electric, and hybrid vehicles. Farley followed up in April with a drill-down on Ford’s EV development strategy, including details about a skunkworks team of experts focused on developing affordable EVs. Today’s announcement isn’t a dramatic reshuffle; it’s a restatement of April’s overall strategic intention with a few added specifics.

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There are many balls in the air surrounding electrification, including shifting plans by major automakers, here-now-gone-here-again small EV brands, the looming effects of burgeoning Chinese EVs, new battery tech developments, consumer pushback against high EV prices, and the need for a more robust nationwide charging infrastructure. Against that mosaic of factors, any automaker that doesn’t periodically clarify what has changed and what stays the same in its electrification strategy may be making a mistake.

Major points in Ford’s electrification update

The following are significantly shortened summaries of the main points in today’s strategy statement:

  • Purpose: Ford wants to give customers good choices, run an efficient, profitable business, and cut carbon emissions.
  • Focus: Ford intends to concentrate on vehicle classes where it has competitive advantages with lower prices and longer ranges to speed customer adoption.
  • Priority: The highest on the EV launch plans are commercial vans, a mid-size pickup truck, and the next full-size F150-class truck.
  • Greatest asset: The new affordable EV platform will speed development in multiple vehicle categories.
  • Batteries: Ford expects to bring its lithium-ion phosphate battery plant online in 2026, providing what Ford claims is “one of the lowest-cost battery cells in North America.”
  • Expect more updates:A particularly relevant note in Ford’s news release sets the expectation for additional updates, “Ford will provide an update on electrification, technology, profitability and capital requirements in the first half of 2025.”
Bruce Brown
A Digital Trends Contributing Editor and Contributor for TheManual.com, Bruce Brown writes e-mobility reviews and covers…
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