Ford has unveiled an ambitious and multifaceted restructuring plan that significantly redefines its approach to both gasoline- and electric-powered vehicles. The initiative is designed to substantially escalate the company’s hybrid vehicle production capacity as a direct response to the recent deceleration in electric vehicle (EV) sales growth across the industry. At the core of this large-scale transformation lies a renewed emphasis on operational balance—combining traditional internal combustion technology with electrified powertrains—to meet shifting market realities while continuing to advance Ford’s long-term strategy for sustainable mobility.
As part of this sweeping effort, the automaker is introducing several new and strategically important products that underscore its evolving priorities. Among these is an extended-range electric version of its iconic F-series truck, engineered to deliver far greater driving distance on a single charge. In addition, Ford is embarking on the development of advanced battery storage solutions to support the rapidly expanding infrastructure needs of artificial intelligence data centers—a sector experiencing explosive growth and insatiable demand for dependable power storage. This convergence of automotive engineering and energy technology marks a notable expansion of Ford’s industrial identity.
The announcement arrives after several turbulent years during which Ford has grappled with mounting financial losses tied to its EV operations. Once aspiring to outpace Tesla and become the preeminent seller of fully battery-electric vehicles worldwide, the 122-year-old manufacturer found those ambitions stifled by soaring raw-material costs, a softening consumer appetite, and intensifying competition. The company’s EV-focused division, known as Ford Model e, has suffered compounded deficits exceeding $12 billion over the past two fiscal years, including an alarming 60 percent decline in EV sales as recently as November. Recognizing these headwinds, Ford’s leadership has resolved to reassess its immediate priorities and chart a more balanced path forward.
Central to this new direction is a decisive pivot toward a broad portfolio of hybrid offerings. The company forecasts that hybrids—ranging from conventional gas-electric models to extended-range electric vehicles (EREVs) and smaller, cost-conscious battery-electric cars—will together represent roughly half of Ford’s global sales volume by the end of the decade, a steep rise from the current share of 17 percent. Executives project that the combined hybrid and EV operations will return to profitability by 2029, signaling a long-term commitment to disciplined, sustainable growth rather than short-term speculative expansion.
“This new chapter represents a series of bold but prudent decisions that we firmly believe will provide lasting advantages for our customers, our workforce, domestic manufacturing, and the broader American economy,” explained Andrew Frick, president of Ford Model e and Ford Blue. Yet, achieving such sweeping transformation will come with substantial financial costs. Ford anticipates recording a $19.5 billion accounting charge during 2025, primarily concentrated in the final quarter, along with approximately $5.5 billion in cash-related impacts—most of which will be disbursed in 2026 and finalized in 2027.
Significant organizational changes accompany these financial shifts. Ford has mutually agreed to dissolve its longstanding partnership with South Korean battery manufacturer SK On, a move that transfers full ownership of the BlueOval SK battery complex in Kentucky to Ford itself. The site, rather than continuing to produce EV battery packs at the initially planned scale, will be reconfigured for the manufacturing of large-scale energy storage systems—an initiative first reported by Bloomberg. Although this transition will unfortunately lead to the loss of around 1,600 positions, Frick emphasized that the restructuring will later create as many as 2,100 new roles as future operations ramp up. “This direction is not only beneficial for employment,” he stated, “but it also allows for far more effective utilization of our facilities.”
From a product standpoint, perhaps the most symbolic aspect of Ford’s strategy is the forthcoming replacement of its first-generation F-150 Lightning pickup with a more capable extended-range electric model. Designed to travel up to an impressive 700 miles on a single charge, this next-generation truck will be produced at Ford’s Rouge Electric Vehicle Center in Dearborn, Michigan. While specific price details and launch timing remain undisclosed, the company stresses that this evolved vehicle will address consumer priorities better than its predecessor. The extended-range system integrates a small internal combustion generator used exclusively to recharge the battery, alleviating common customer concerns regarding range limitations or towing endurance.
The first iteration of the F-150 Lightning was initially heralded as a potential catalyst for mass EV adoption in the United States, given the tremendous popularity of Ford’s F-series lineup among truck buyers. However, high sticker prices, heavy battery configurations, and lingering doubts over towing range prevented the model from achieving the explosive growth once envisioned. “The Lightning has served our customers remarkably well and continues to lead the electric pickup segment,” said Frick. “Nonetheless, we have gained invaluable insights from our early EV efforts. We now better understand that many truck owners, particularly those who haul heavy loads over long distances, require capabilities beyond what a purely battery-electric architecture can currently deliver. That realization directly informed our decision to pursue the extended-range design.”
External factors have complicated the picture as well, particularly the policy change that abolished the $7,500 federal EV tax credit under the Trump administration and Republican Congress. This decision, combined with the intrinsic high cost of large EV batteries, has made electric trucks a difficult proposition for widespread consumer adoption. To address affordability and futureproof its lineup, Ford is concurrently investing in a next-generation EV platform dedicated to producing smaller and more reasonably priced models, making the existing Lightning’s position increasingly misaligned with the company’s forward product roadmap.
Finally, Ford’s vision extends beyond the automobile and into broader applications of its technological assets. With reduced EV build-out over the next few years, the automaker intends to strategically redeploy its lithium iron phosphate (LFP) battery supply into the rapidly growing energy storage industry. These prismatic cells will be incorporated into infrastructure supporting high-demand sectors, especially AI-driven data centers that consume immense and continuous power streams. “Energy storage was a natural adjacency for us,” explained Lisa Drake, Ford’s vice president of technology platform programs and EV systems. “Our experience with battery production and power management directly translates into this field.” While Ford has not ruled out expanding into residential storage solutions in the future, the company’s initial focus will be squarely on commercial-scale clients, where demand and return potential are currently strongest.
In essence, Ford’s strategic realignment represents neither a retreat from electrification nor an abandonment of innovation, but rather a recalibration grounded in pragmatism. By harmonizing its hybrid and EV pathways, optimizing its industrial resources, and exploring adjacent energy technologies, the century-old automaker aims to secure long-term competitiveness in an evolving transportation landscape increasingly defined by flexibility, efficiency, and technological integration.
Sourse: https://www.theverge.com/news/844813/ford-hybrid-erev-f150-energy-storage-jobs
