Ford: no electric, yes hybrid – even if it costs 20 billion

The all-electric version of the F-150 Lightning is gone. A new strategy that has high costs over the next two years.

The direction will change. THE Ford will thoroughly rework its electric vehicle and battery strategy, moving towards hybrid solutions and a new energy storage business.

The company decided abandon the all-electric version of the F-150 Lightning and channel more investment for hybridsfor models extended autonomy electric and for systems batteries intended to support data centers and the stability of the electrical grid.

But this reorientation has a high cost: Ford plans to register almost 20 billion dollars (17 billion euros) in charges until 2027; more than 5 billion of which will be in cash in the next two years.

Still, the company argues that the adjustment is necessary to align supply with demand and stop losses in large tram segments that, according to management, have no realistic path to profitability.

By 2030, Ford estimates that around half of its global volume is made up of hybrids, extended range trams and pure trams — above the 17% current

In the short term, however, the bet involves “diversify” engine options in categories where the brand has greater weight, such as work vehicles, pick-ups and vans, summarizes the .

In the case of the next F-150 Lightning, the company aims for an extended range model, combining an electric engine and a gasoline engine, with an announced range of around 700 miles (approximately 1125 km).

The change represents, in practice, a setback compared to the investment plan of 11 billion dollars (9.3 billion euros) announced in 2021 – to create a new electric production ecosystem, with an assembly plant in Tennessee and at least three battery factories in partnership in Kentucky and Tennessee. Now, the Tennessee unit will be converted to produce combustion trucks, with 2,300 jobs.

The company admits that 1600 workers will remain unemployed in Kentucky, although they can reapply when the plant reopens in about two years; the ultimate goal is to hire 2100 people locally.

Also the partnership with the South Korean SK On, for batteries, it is cancelled, with the division of the two existing factories.

All this with a context: weak demand for electric vehicles, high costs and a new regulatory context in the USA, marked by a rollback in rules for clean vehicles.

Ford is “following the customer” and looking at “the market as it is today”, explains Andrew Frick, head of Ford.