As Ford struggles amid the industryโs shift to EVs, the automaker plans to lean into its hybrids. In a move that mirrors Toyota, Ford is scaling back its transition to EVs to bet on hybrids.
Despite Fordโs EV sales hitting a new record with 8,958 electric vehicles sold in November, the automaker is scaling back.
Ford sold more F-150 Lightning models last month (4,393) than it did in the entire third quarter (3,503). The Lightning edged out Rivianโs R1T for the top-selling electric truck spot through November.
Despite this, Fordโs CEO Jim Farley explained on the companyโs Q3 earnings call that heโs โso thankful we have kept our foot on the has to freshen our ICE and HEV products as we enter a changing market.โ
Farley added that Ford Blue (Fordโs ICE business) โwill be strong and a growing business for years to come.โ
The automakerโs leader said that although Ford remains โbullish on Model e and our EV future,โ the market is โa moving target.โ
Ford to lean further into ICE, hybrids
Ford recently scaled back several EV initiatives. The companyโs CFO, John Lawler, added that Ford is โslowing down several investments,โ including around $12 billion in EV spending.
Lawler reiterated the stance last month at the 2023 Barclays Global Automotive & Mobility Conference. He said the company is not changing its strategy but rather โchanging the pace and flowโ of capital and capacity put in place.
This includes cutting planned production at its Marshall plant by about half, reducing inverter and motor capacity, and pulling back on vertical integration plans.
Fordโs financial leader said the company will lean into hybrids as a โbridgeโ to EVs. The comments mirror Toyota, which has notoriously stuck to its hybrid stance. Despite plans to accelerate its pace over the next few years with new tech, Toyotaโs EV sales accounted for just 1% of its total volume last month.
Lawler said Ford โbecame a little bit complacentโ on hybrids. He said hybrids were always a big part of the mix, and โwith EV adoption slower, hybrids are going to be a bigger part.โ
Electrekโs Take
Fordโs financial boss is overlooking a key piece of info โ EV adoption is not slowing. Recent research from BloombergNEF shows โreports of an electric vehicle slowdown have been greatly exaggerated.โ
Passenger EV sales are expected to reach 14 million this year, climbing 35% from 2022. In the US, Fordโs biggest market by far, sales are growing even quicker, with 50% growth expected this year.
As the report notes, many legacy automakers have launched products that are โnot competitive on price, range or features.โ As a result, EV makers like Tesla, Rivian, and BYD continue gaining market share. EV leaders, including Tesla, BYD, and Li Auto, will account for 7% of global vehicle sales this year compared to just 1% in 2020.
Other legacy automakers, like Hyundai and Volvo, are doubling down on EVs with competitive, unique models.
Volvo is launching its cheapest and smallest vehicle, the EX30, with starting prices under $35,000. Despite its compact size, Volvo expects to see big demand for the electric car.
Ford is about to face new competition with Teslaโs Cybertruck rolling out and new Silverado and GMC Sierra electric trucks launching next year. This could be a reason for Ford shifting plans to focus on hybrids like Toyota.
Pushing back investments now while others are surging ahead could put Ford further behind as the industy shifts to an all-electric future.
