In a surprising about-face, Ford is slamming on the brakes for electric vehicle (EV) production and shifting gears towards ramping up production of its classic, gas-guzzling Super Duty trucks. This strategic pivot comes after the automaker lost billions on its EV division and delayed the release of a new electric SUV model.
To quench the seemingly unyielding thirst for these heavy-duty trucks, Ford is pouring a hefty $3 billion into expanding production capacity. This includes significant upgrades to a Canadian assembly plant that was originally earmarked for EV manufacturing.
This course correction reflects a broader trend within the auto industry, where some manufacturers are reevaluating their ambitious EV goals in the face of a shifting market world. While Ford hasn’t abandoned its commitment to electrification entirely, the current market realities necessitate a focus on its profitable, gas-powered workhorses.
This decision comes after years of hemorrhaging cash on its EV operations, highlighting the financial challenges some automakers face in the transition to electric mobility. The sizeable investment in Super Duty production suggests that Ford believes these traditional trucks will continue to be a major revenue driver for the foreseeable future.
Despite revealing an ambitious electric vehicle (EV) strategy, Ford+, in 2021, the company is implementing a strategic shift to address immediate market realities. While Ford remains committed to electrification in the long run, surging demand for its current gas-powered Super Duty trucks necessitates a temporary adjustment.
To bridge the gap between production limitations and consumer needs, Ford is prioritizing the current generation of Super Duty trucks, pushing back electric variants for the next iteration. This prioritization is further emphasized by the upcoming Canadian plant dedicated to Super Duty production, signifying job creation and a significant boost in output.
Ford’s measured approach reflects the broader automotive industry’s adaptation to unforeseen challenges like the global pandemic and chip shortage, all while going around a rapidly evolving consumer world. With a lingering financial crisis and a less-than-ideal charging network infrastructure, car manufacturers are strategically adjusting their course.
This strategic shift is evident in Ford’s decision to expand production of the gas-powered Bronco while reallocating resources from the F-150 Lightning electric truck. Additionally, Ford’s plans to quadruple hybrid vehicle production highlight a calculated approach to introduce electrification gradually. Hybrids could potentially serve as a stepping stone for customers hesitant to fully embrace EVs, paving the way for a smoother transition towards a more sustainable future.
