6 Minutes
Ford pivots: more trucks, hybrids and cheaper EVs
Ford Motor Company has announced a major strategic reset that refocuses the automaker around trucks, vans, hybrids and smaller, more affordable electric vehicles. The move — presented as customer-driven and profitability-focused — also reshuffles production plans and product priorities across the Blue Oval’s U.S. plants.
What’s changing
Rather than pursuing a single-minded transition to long-range, large battery electric vehicles, Ford will expand its portfolio of gasoline, hybrid and electric powertrains. Hybrids will act as complements to efficient internal-combustion models, not simple stopgaps. At the same time, Ford’s new Universal EV Platform will underpin multiple forthcoming models designed to be flexible, cost-efficient and suitable for localized production.
Production highlights include:
- New pickups to be built at BlueOval City in Tennessee.
- A gas and hybrid commercial van to be produced at Ohio Assembly Plant.
- The first Universal EV Platform vehicle — a fully connected mid-size pickup — slated for assembly at Louisville Assembly Plant beginning in 2027.
- The next-generation F-150 Lightning moving to an extended-range electric vehicle (EREV) architecture and being built at the Rouge Electric Vehicle Center in Dearborn, Michigan.
Workforce and manufacturing
Ford says it will add several thousand jobs in the United States over the next few years while reallocating employees between facilities to support the new production mix. The company also plans to make fuller use of wholly owned plants in Kentucky and Michigan and to leverage LFP battery chemistry as part of a broader energy and storage push.
Battery energy storage enters the mix
In a notable diversification, Ford will expand into energy infrastructure and battery energy storage systems (BESS), targeting demand from data centers and other commercial customers. Initial shipments of BESS are expected to begin in 2027, with a 20 GWh annual sales ambition. This represents a strategic bid to capture recurring, high-margin revenue beyond vehicle sales.
Despite the new initiatives, Ford’s Model e division — the company’s EV product and software arm — remains under pressure. Management now forecasts Model e profitability to emerge in the coming years, with more meaningful improvements expected by 2029.
Product pruning: larger EVs on hold
Perhaps the most headline-grabbing decision is Ford’s decision to stop development or production of certain larger electric vehicles where the business case has deteriorated. The company cites lower-than-expected demand, rising costs and shifting regulations as reasons to shelve or rework big EV projects. The result: a renewed focus on smaller, more affordable EVs built on the Universal EV Platform, as well as hybrids and extended-range electric powertrains for capability-focused buyers.
“This is a customer-driven shift to create a stronger, more resilient, and more profitable Ford,” said Jim Farley, Ford president and CEO, summarizing the rationale behind reallocating capital to higher-return opportunities.
F-150 Lightning and the EREV transition
Ford has already ended production of the current all-electric F-150 Lightning. Rather than disappearing permanently, the Lightning nameplate will return in a next-generation form that shifts to an EREV architecture — combining an internal combustion engine and electric propulsion to extend range and towing capability. During the transition, workers from Lightning production have been moved to support additional gas and hybrid F-150 shifts at Dearborn Truck Plant.
The EREV strategy is aimed squarely at customers who prioritize towing, payload and long-distance usability — areas where pure battery-electric pickups have struggled to match ICE trucks without very large batteries and high cost.
Five affordable vehicles and nearly full-line hybridization
By the end of the decade Ford plans to introduce five new affordable models, four of which will be produced in the U.S. The previously planned all-electric commercial van for North America is now replaced with an affordable commercial van available with gasoline and hybrid powertrains — a pragmatic decision to meet customer needs for cost, range and payload.
Ford expects that, by 2030, nearly every model in the lineup will offer a hybrid or multi-energy option. That mirrors a broader market trend: instead of one-size-fits-all electrification, manufacturers are mixing technologies to cover a wider set of use cases and customer price points.
Financial backdrop and outlook
Ford raised its adjusted EBIT guidance for 2025 to about $7 billion, pointing to healthy underlying operations and ongoing cost improvements. Still, rebuilding Model e’s profitability remains a multi-year challenge. Investors and observers will watch closely when Ford reports fourth-quarter and full-year 2025 results on February 10, 2026, for more detail on execution and margins.
Key takeaways
- Ford refocuses on trucks, vans, hybrids and affordable EVs rather than big, costly BEVs.
- Universal EV Platform will underpin smaller, cost-efficient electric models starting with a mid-size pickup in 2027.
- F-150 Lightning will return as an extended-range EREV built in Dearborn.
- BESS business begins shipments in 2027 with a 20 GWh sales target.
For car enthusiasts and fleet buyers the message is clear: Ford is prioritizing capability, affordability and margin. Whether that translates into regained EV competitiveness and stronger profitability will depend on execution — from platform rollout to battery supply and market appetite for EREVs and hybrids. Expect the next 12–24 months to reveal how well the Blue Oval’s recalibration lands with customers and investors.
Source: autoevolution
Comments
atomwave
Wow didnt expect the Lightning to come back as an EREV, kinda wild. Hybrids and BESS, smart move but execution matters, fast
v8rider
Is Ford really gonna make cheaper EVs and EREV pickups? sounds like pivot talk, but who pays for big batteries and towing, and where's the demand 4 that
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