Ford shifts focus to hybrid vehicles in US

Ford Motor Company is recalibrating its approach to electric vehicle (EV) profitability, emphasizing smaller, more affordable models as a key strategy. Marin Gjaja, Ford's chief operating officer for its Model e EV unit, described this new direction as an "insurance policy" aimed at enhancing the company's hybrid offerings and creating cost-effective EVs. This shift comes as Ford cancels a large electric three-row SUV and delays the production of its next-generation “T3” electric pickup truck by 18 months, now slated for late 2027. The automaker is also refocusing its battery production and sourcing efforts to the U.S. This strategic pivot reflects broader trends within the auto industry, where the adoption of EVs has been slower than anticipated. Many automakers, including Ford, are grappling with challenges in achieving profitability in the EV sector. Gjaja noted that while EV growth continues, it is not occurring at the rapid pace expected in 2021 and 2022. Additionally, concerns are mounting over the potential impact of Chinese automakers flooding the market with cheaper, more profitable EVs. In contrast to Ford's cautious approach, General Motors (GM) is moving forward with its EV plans, expecting profitability once it reaches an output of 200,000 units by the fourth quarter. GM is set to introduce several all-electric models, including crossovers and an Escalade SUV, as it aims to solidify its position in the competitive EV market. Ford remains committed to developing technologies that balance affordability for consumers with profitability for the company.