Ford is undertaking a notable transformation in its long-term electrification strategy, signaling a deliberate retreat from several fully electric vehicle projects in favor of expanding its hybrid and extended-range lineup. In a detailed press release issued on Monday, the company revealed that it will modify its electric vehicle production roadmap, emphasizing profitability and sustainable demand over the previous ambition of rapid all-electric expansion. Ford explained that it intends to deprioritize the development and manufacturing of several large, fully electric vehicles—particularly those where the financial viability no longer justifies continued investment. According to the automaker, the anticipated return on these models has diminished significantly, a consequence of several interrelated factors: consumer demand for large EVs has fallen below projections, production and material costs have risen sharply, and changes in regulatory environments have altered the economic incentives originally underpinning the business case.
In its announcement, the company clarified that it is suspending the rollout of certain electric commercial vans that had been slated for launch in both the U.S. and European markets. Rather than continuing to commit resources to large, expensive electric models, Ford will redirect its engineering and manufacturing capacity toward expanding the development and production of hybrid vehicles. This pivot marks a major recalibration of priorities, reflecting both evolving market dynamics and shifting consumer expectations. The automaker forecast that by the year 2030, approximately half of its total global sales volume will consist of hybrids, extended-range electric vehicles, and battery-powered models combined—a dramatic increase from the current share of only about seventeen percent.
Chief Executive Officer Jim Farley elaborated on this strategic decision during an in-depth interview with Bloomberg on Monday. Farley noted that the impetus for this shift originated directly from observable changes in consumer purchasing behavior, which underscored the need for flexibility in Ford’s electrification roadmap. He highlighted that in November, sales of Ford’s hybrid vehicles increased by nearly thirty percent, a compelling sign that customers are gravitating toward technology that blends electric efficiency with the reliability and range of combustion engines. Conversely, demand for the company’s more expensive all-electric offerings weakened, while relatively affordable EV models continued to perform moderately well. Farley underscored the larger trend shaping the broader industry, noting that the overall share of electric vehicles in the U.S. automotive market has contracted—from roughly twelve percent to only around five percent of total industry volume—a deterioration that ultimately played a decisive role in management’s strategic reassessment.
Looking ahead, Ford announced its intention to channel its resources toward the creation of a new generation of compact, efficient, and financially accessible electric vehicles. Instead of pushing forward with high-cost, full-size models, the company plans to introduce a scalable family of smaller all-electric cars, beginning with a midsize pickup truck that is expected to enter production in 2027. This vehicle line will aim to address a broader demographic of consumers seeking cost-effective solutions to electrified transportation without compromising performance or capability.
Ford estimates that the cumulative financial impact of revising its electric vehicle portfolio will amount to roughly $19.5 billion, a substantial cost that will largely be recognized in the current fiscal quarter. Despite the anticipated near-term financial burden, the company’s stock market performance remained stable following the announcement, maintaining a steady trajectory and posting an overall gain of approximately thirty-eight percent since the beginning of the year.
The policy landscape has also played a pivotal role in shaping Ford’s recalibration. Recent decisions by the Trump administration to roll back certain federal incentives that previously stimulated the EV market—most notably the discontinuation of the $7,500 federal tax credit for electric vehicle purchases implemented in September—have altered the economics of consumer adoption and manufacturer planning alike.
Ford’s revised electric strategy follows closely on the heels of an October announcement in which the company declared its intent to intensify production of its best-selling F-150 pickup truck. The automaker confirmed plans to expand F-150 manufacturing by approximately 50,000 units in 2026, reallocating portions of its workforce from EV production lines to meet this new production target. In conjunction with this effort, the company will pause assembly of the F-150 Lightning, the electric variant of its flagship vehicle, as part of a broader initiative to refocus resources on conventional gas-powered and hybrid models. Collectively, these moves illustrate Ford’s commitment to balancing technological innovation with pragmatic market and financial realities, solidifying a hybrid-centered vision for the foreseeable future.
Sourse: https://www.businessinsider.com/ford-electric-vehicles-switch-hybrid-2025-12
