The US Government’s repealing of vehicle emissions penalties and electric vehicle subsidies has led Ford to make a bold decision by scrapping multiple EV projects.
Ford announced overnight it will instead focus on hybrids in its future US model lineup, in what Blue Oval president and CEO Jim Farley called a “customer-driven shift to create a stronger, more resilient and more profitable Ford”.
“The operating reality has changed, and we are redeploying capital into higher-return growth opportunities: Ford Pro, our market-leading trucks and vans, hybrids and high-margin opportunities like our new battery energy storage business.”
Ford expects 50 per cent of its global vehicle sales to be electrified vehicles – encompassing hybrids, extended-range EVs and EVs – by 2030, representing a significant jump above the 17 per cent figure in 2025.
The plan to move away from EVs has already started, with the Ford F-150 Lightning – the first electric pickup from a ‘legacy’ mass-market brand – having ended production. The workforce responsible for it has been redeployed to build petrol and hybrid F-150s.
While Ford had planned for a second-generation successor to the F-150 Lightning to remain electric, reports had claimed this had been axed. Ford has now announced the new pickup will be an extended-range EV, utilising a petrol engine to charge its battery pack.
It follows Ram making a similar call on its electric 1500 pickup, which earlier this year was cancelled and replaced with an already planned extended-range EV, to be sold as the Ram 1500 REV.
In addition to the cancellation of the second-gen F-150 Lightning, Ford also announced it “no longer intends to produce a previously planned new electric commercial van for Europe”, instead saying it “will continue to maintain its full lineup of electrified vans for that market”.
This comes off the back of Ford last week announcing it will partner with Renault to develop an electric commercial vehicle in Europe, following the launch of two passenger vehicles.
On top of this, the North American market Ford E-Transit will be replaced with “a new, affordable commercial van” that will be available with petrol and hybrid power.
Importantly, Ford is forging ahead with its plans to launch a new ‘Universal EV’ platform in 2027, set to debut in a Ranger-sized pickup. Later it will grow to “a high-volume family of smaller, highly efficient and affordable electric vehicles”.
Ford is also set to repurpose its upcoming ‘BlueOval City’ facility in Tennessee to produce a new range of pickups from 2029, rather than the existing plan to have it as a hub for EVs.
In the short term, Ford estimates its change of plans will result in it recording about US$19.5 billion (A$29.4 billion) in special items.
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