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Ford Delays Plans for Next-Gen EVs
Ford Motor Co. announced Thursday that it would be postponing its plans for a new electric pickup and three-row electric utility vehicles due to a slowdown in electric vehicle demand and a surge in hybrid sales. By the end of the decade, Ford aims to have hybrid versions of all its Ford Blue lineup available in North America.
Hybrid Sales Surge
In the first quarter of 2024, hybrid sales saw a significant increase of 42%, with 38,421 units sold, representing almost 7.5% of all cars sold by Ford during that period. Notably, sales of the Maverick hybrid trucks soared to 19,660 units, marking a 77% year-over-year growth. Ford has strategically focused on expanding its hybrid vehicle offerings as a strategic measure against the American market’s gradual adoption of electric vehicles.
Production Delays
The launch of production at Ford’s Blue Oval City plant in Tennessee, as well as the production of three-row EVs at the Oakville Assembly Plant in Ontario, Canada, has been pushed back. The new timelines now place the start of production in 2026 and 2027, respectively. Ford explained that these delays will provide an opportunity to leverage emerging battery technologies.
“As the No. 2 EV brand in the U.S. for the past two years, we are committed to scaling a profitable EV business, using capital wisely and bringing to market the right gas, hybrid, and fully electric vehicles at the right time,” said Ford CEO Jim Farley.
Focus on EV and Hybrid Strategy
Despite a noteworthy 86% increase in EV sales, accounting for 20,223 units last quarter, electric vehicles still represent less than 4% of Ford’s total deliveries during that period. The Mustang Mach-E crossover dominated Ford’s EV sales, making up nearly half of all EVs sold, mainly driven by new incentives of up to $8,100.
Looking ahead, Ford intends to strengthen its hybrid vehicle offerings and capitalize on the evolving market landscape. The company’s long-term strategy involves a balanced approach to gas, hybrid, and fully electric vehicles to ensure sustainable growth and profitability in the EV sector.
Industry Trends
With the EV market maturing and sales growth stabilizing, several automakers, including General Motors, are realigning their focus on hybrid vehicles. General Motors reported a 20% decline in first-quarter EV sales and plans to sell between 200,000 and 300,000 EVs in North America this year, adjusting production based on demand. In the interim, GM will prioritize hybrid vehicles, with a particular emphasis on the Chevy Corvette E-Ray.
Toyota Motor, a pioneer in hybrid vehicles since the 1990s, recently announced the delivery of nearly 178,000 electrified vehicles, including plug-in hybrid models. Hybrids accounted for 36% of Toyota’s total sales, reflecting the enduring popularity and market demand for hybrid technology.
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