Ford has joined the growing chorus of automakers paring back their plans to introduce new electric vehicles as adoption rates continue to lag far behind early expectations. In a strategy update this week, the Blue Oval said it would scale back some of its EV ambitions to focus instead on launching new gas and hybrid vehicles – products the company says are aligned with what customers actually want.
The move will cost Ford a hefty $19.5 billion charge to its earnings, with roughly $8 billion of that tied to a scale-down of its Model e division, launched in 2022 to develop new EVs and software. Still, Ford isn’t abandoning EVs entirely. The company plans to continue rolling out models in more affordable segments and, in some cases, with a gas engine serving as a range extender – including in a next-generation EREV F-150 Lightning that was announced as part of the strategy update.
Ford CEO: “Buyers Don’t Want Expensive EVs”
Factors such as the elimination of federal incentives, insufficient charging infrastructure, and what can only be called horrific demand have all hurt EV sales. Ford CEO Jim Farley added that there simply aren’t many buyers interested in expensive EVs – those priced above $50,000. Instead, the market, he said, is signaling a clear preference for gas- and hybrid-powered pickup trucks, SUVs, and commercial vans, alongside more affordable EVs.
As a result, Ford has canceled several high-end EVs in larger vehicle segments, including a much-hyped three-row SUV, and will focus on smaller, more affordable models built on its flexible Universal EV Platform, announced earlier this year. The first of these will be a midsize pickup truck, starting production at Ford’s Louisville Assembly Plant in 2027. In Europe, Ford will rely on a small EV platform borrowed from Renault, similar to how it currently uses Volkswagen Group’s MEB platform for a pair of compact crossovers sold in the region.
Electric commercial vans for both the US and Europe have also been canceled, with gas and hybrid alternatives planned instead. The US alternative will be built at Ford’s Ohio Assembly Plant starting in 2029.
Some large EVs will remain, but they will be offered with range extenders, referred to as extended-range electric vehicles (EREVs). One of these is the aforementioned next-generation F-150 Lightning, which will deliver the driving characteristics of an EV that customers love, while offering an estimated range of over 700 miles and strong towing capability. The new truck will be built at the Rouge Electric Vehicle Center, taking over from the current F-150 Lightning whose production has just been wound up. Timing for the new truck wasn’t mentioned. The move mirrors what Ram did with its own electric 1500, canceling the pure battery-powered version while keeping the EREV option.
New EV Targets Significantly Scaled Back
It was only three years ago that Ford was targeting two million EV sales annually by 2026 – roughly equal to the total number of vehicles it sold in the US last year. In its recent strategy update, the automaker said it now aims for 50% of its global sales to be electrified by 2030, up from 17% so far in 2025. “Electrified” in this context includes hybrids, EREVs, and conventional EVs. The target is part of Ford’s overarching goal of achieving carbon neutrality across its vehicle lineup, manufacturing facilities, and supply chain by 2050 at the latest.
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This article originally appeared on CarBuzz and is republished here with permission.
