Ford Shifts Gears: Hybrid SUVs Over Full EVs for Family Market

Ford is rethinking its electric vehicle strategy, betting that hybrid technologies might be more appealing to family car buyers than full EVs. This shift comes amid concerns over high EV prices and range anxiety, according to a recent report from NPR.

Hybrid SUVs: The New Focus

John Lawler, Ford’s vice chair and CFO, stated in a recent conference call, “When you look at the three-row SUV, hybrid technologies or multiple propulsion technologies, for those customers, is the best solution.”

This marks a significant change from Ford’s previous plans to produce an all-electric three-row SUV, which have now been put on hold.

The Economics of EVs

The decision reflects Ford’s new requirement for vehicles to become profitable within 12 months of launch – a challenging target for all-electric three-row SUVs. Ford has been losing money on each EV sold, forcing a reevaluation of its EV strategy.

Stephanie Valdez Streaty from Cox Automotive explained, “With EVs, it’s all about the battery.” She noted that batteries can account for up to 45% of an EV’s cost, making profitability difficult, especially for larger vehicles.

Market Pressures and Competition

Ford’s shift also comes in response to a cooling EV market and increasing competition. Lawler mentioned, “We’re seeing a tremendous amount of competition” in the SUV segment, with S&P Global reporting about 143 EVs in the pipeline for North America, mostly SUVs.

Future Plans and Current Offerings

While Ford is pivoting on three-row SUVs, it’s still committed to EVs in other segments. The company will continue selling its Mustang Mach-E and F-150 Lightning, along with electric commercial vans. Future EV efforts will focus on pickup trucks and vans, where Ford sees a competitive advantage.

The Role of Hybrid Technology

Ford believes hybrid technology offers a better profit profile for larger vehicles like three-row SUVs.

Lawler explained, “When you can take down the battery size… on these larger vehicles, like a three-row SUV, the profit profile is better.”

EVXL’s Take

While Ford’s shift might seem like a step back for EVs, it’s a pragmatic approach to the current market realities. As we’ve seen in our Tesla coverage, even EV leaders face challenges in balancing innovation with profitability. Ford’s hybrid focus for family SUVs could serve as a bridge, helping more consumers transition to electrified vehicles while the industry continues to improve EV technology and infrastructure. This strategy might actually accelerate the overall adoption of cleaner vehicle technologies in the long run.

What do you think about Ford’s strategy shift? Are hybrids the right move for family SUVs, or should automakers push harder for full EVs? Share your thoughts in the comments below.

Foto met dank aan Ford


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Haye Kesteloo
Haye Kesteloo

Haye Kesteloo is hoofdredacteur en oprichter van EVXL.cowaar hij al het nieuws over elektrische voertuigen verslaat, met aandacht voor merken als Tesla, Ford, GM, BMW en Nissan. Hij vervult een vergelijkbare rol bij de nieuwssite voor drones DroneXL.co. Haye kan worden bereikt op haye @ evxl.co of @hayekesteloo.

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