Ford's Big Shift: From EVs to Hybrids and Energy Storage

Ford has decided to change its plans for electric vehicles (EVs). The company is now focusing more on hybrids and energy storage. This change comes after Ford faced big losses in its EV business. The company's EV division, Ford Model e, lost over $12 billion in the last two years. EV sales also dropped by more than 60 percent in November. Ford plans to make hybrids a big part of its future. By 2030, the company wants half of its global sales to be hybrids, extended-range electric vehicles (EREVs), and smaller, more affordable EVs. Ford believes this shift will help the company become profitable again by 2029. This change won't be easy or cheap. Ford expects to spend $19. 5 billion in 2025 and another $5. 5 billion in cash effects by 2027. The company is also making big changes to its workforce. Ford recently ended its partnership with South Korean battery maker SK On. This means Ford will now own the BlueOval SK battery factory in Kentucky. The factory will be used to build energy storage systems. At least 1, 600 employees will lose their jobs, but Ford plans to add around 2, 100 new jobs over time.Ford is also working on a new version of its F-150 Lightning truck. This new model will have an extended range and can travel up to 700 miles on a single charge. The truck will have a small internal combustion engine to recharge the battery. This feature is meant to help with range anxiety and towing capacity, which were issues with the first version of the F-150 Lightning. The original F-150 Lightning was expected to be a big hit, but it didn't sell as well as hoped. The high price, heavy battery, and range concerns kept it from becoming as popular as Ford wanted. The elimination of the $7, 500 federal EV tax credit also played a role in the truck's lower sales. Ford is also looking into energy storage as a way to use its previous EV investments. The company plans to use its prismatic lithium iron phosphate (LFP) batteries for energy storage systems. These systems can power data centers and other commercial uses. Ford sees this as a natural next step for the company.