Ford announced a series of changes to its gas- and electric-powered vehicle business aimed at dramatically increasing hybrid vehicle production in the face of slowing EV sales. The automaker also will introduce some new products as part of this plan, including an extended-range EV version of its F-series truck and battery storage systems to meet growing demand from AI data center construction.
The news comes after Ford has weathered years of compounding losses from its struggling EV business. The 122-year-old company once had aspirations to surpass Tesla in battery-electric vehicle sales, but higher material costs and waning demand have since turned that goal into a financial albatross. Over the past two years, the company’s EV division, Ford Model e, has lost over $12 billion, with EV sales down over 60 percent in November alone. Now, Ford says it’s ready to pivot once again.
Hybrids are now going to be the major focus going forward, Ford said. The automaker expects gas-electric hybrids, extended-range electric vehicles (EREVs), and smaller, more affordable battery-electric vehicles to make up 50 percent of its global volume by 2030, versus just 17 percent today. Ford says it expects its hybrid and EV business to be profitable by 2029.
Hybrids are now going to be the major focus going forward
“Rather than spending billions more on large EVs that now have no path to profitability, we are allocating that money into higher returning areas, more trucks and vans, hybrid, extended-range electric vehicles, affordable EVs, and entirely new opportunities like energy storage,” said Andrew Frick, president of Ford Model e and Ford Blue.
The shift won’t come cheap. Ford says it expects to record a $19.5 billion charge in 2025, with the majority in the fourth quarter. The company also expects to be hit with $5.5 billion in “cash effects” with the majority paid in 2026 and the leftover in 2027.
Nor will it come without major changes to Ford’s workforce. Ford recently agreed to dissolve its partnership with South Korean battery maker SK On, which will result in the automaker taking full ownership of the BlueOval SK battery factory in Kentucky. That factory will be repurposed to build energy storage systems, as first reported by Bloomberg. At least 1,600 employees are expected to lose their jobs as a result, though Frick said that more jobs, as much as 2,100, are expected to be added over the years.
“This is positive for jobs and positive for how much we’re going to utilize those plants,” Frick added.
In terms of products, Ford expects to replace its first-generation F-150 Lightning with an extended-range version that can travel up to 700 miles on a single charge. The EREV truck will be produced at Ford’s Rouge Electric Vehicle Center in Dearborn, Michigan, with timing and starting price announced at a later date.
EREVs have a small internal combustion engine to recharge the EV battery for more range. They function as EVs, with the electric motors driving the wheels, and batteries that can be plugged into EV chargers. The gas generator is intended to relieve any range anxiety — or with truck owners, towing capacity — that some customers may have about buying a full EV.
“This is positive for jobs and positive for how much we’re going to utilize those plants.”
The F-150 Lightning was once thought to be a crucial driver for wider EV adoption in America. After all, a battery-electric version of Ford’s bestselling truck was sure to be a big winner. But the high price, heavy battery, and range and towing concerns from longtime truck owners kept the Lightning from breaking through as it was expected.
“It’s been a great truck for many people, and it has remained the bestselling electric pickup,” Frick said, “but we also learned a lot from our first generation of EVs, and we know that for many truck owners, towing heavy loads over long distances is nonnegotiable. That is why our next generation F-150 Lightning will be an extended range EV.”
The elimination of the $7,500 federal EV tax credit at the hands of Donald Trump and the Republicans played a role as well. But electric trucks have always been a tough sell, with their big, expensive batteries pushing prices up higher than most consumers are willing to spend. And now Ford is heavily invested in a brand-new EV platform for more affordable models, making the F-150 Lightning an awkward fit for the company’s future lineup.
Energy storage is another way in which Ford plans to repurpose its previous EV investment. Since it won’t be building as many EVs in the near future, the company plans to use its prismatic lithium iron phosphate (LFP) batteries for energy storage systems to power data centers, among other uses. Lisa Drake, vice president of technology platform programs and EV systems, said energy storage “just made a lot of sense as a natural adjacency for us.” Ford could expand that business to include battery storage products for residential uses, but Drake said that commercial customers would be first and foremost.
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