Ford Motor has unveiled a major reset of its electric vehicle (EV) strategy as part of a sharpened Ford+ plan, shifting capital toward higher-return opportunities and away from large, capital-intensive electric vehicles with weakening demand. The move reflects changing market conditions, evolving regulations and a stronger focus on profitability, affordability and customer choice.
At the center of Ford’s updated EV strategy is a shift toward hybrids, extended-range electric vehicles and smaller, more affordable pure electric models. By 2030, Ford expects around 50 percent of its global vehicle volume to come from hybrids, extended-range EVs and fully electric vehicles, up from 17 percent in 2025. This marks a clear recalibration after years of aggressive investment in large battery-powered vehicles that have struggled to reach scale and profitability.
The strategy of Ford indicates that it will be narrowing its pure electric vehicle development in North America to a new, flexible Universal EV Platform designed for high-volume, lower-cost models. This platform will underpin a family of smaller, highly efficient EVs aimed at mass-market customers rather than premium segments. The first model on this architecture will be a fully connected midsize electric pickup truck assembled at the Louisville Assembly Plant starting in 2027, with an expected starting price around $30,000.
For larger vehicles, Ford is moving away from fully electric designs and toward extended-range electric solutions. The next-generation F-150 Lightning will adopt an extended-range electric vehicle architecture that combines electric driving with a gas-powered engine to recharge the battery.
Ford says this approach preserves the benefits customers value, including strong acceleration and electric power delivery, while adding an estimated range of more than 700 miles and improved towing capability. Assembly will take place at the Rouge Electric Vehicle Center in Michigan.
As part of this shift, Ford has canceled several electric models, including electric truck codenamed T3 and new electric commercial vans for North America and Europe. Instead, the company will introduce a new affordable commercial van with gas and hybrid options, to be built at the Ohio Assembly Plant, aligning more closely with the needs of commercial customers focused on cost, uptime and flexibility.
The strategic reset comes with significant financial implications. Ford will take about $19.5 billion in special charges spread across 2025, 2026 and 2027, with roughly $8.5 billion tied to canceled EV programs and additional costs related to battery joint venture changes and program expenses. Despite the writedown, Ford raised its 2025 adjusted EBIT guidance to about $7 billion, signaling confidence in the underlying strength of its core businesses.
A key pillar supporting Ford’s long-term electrification strategy is diversification beyond vehicles. The company is launching a battery energy storage system business, repurposing underutilized EV battery capacity in Kentucky and Michigan to serve data centers, utilities and large industrial customers. Ford plans to invest around $2 billion over the next two years and target at least 20 GWh of annual energy storage capacity by late 2027, creating a new revenue stream less exposed to consumer EV demand swings.
Ford’s evolving EV strategy also reinforces its emphasis on U.S. manufacturing. Facilities in Tennessee and Ohio are being repurposed to expand truck and van production, while battery plants will support both vehicle electrification and energy storage solutions. The company says it plans to hire thousands of workers across the U.S., even as it manages near-term adjustments at some battery facilities.
The reset reflects broader industry trends as automakers respond to softer EV demand, the expiration of consumer tax credits and regulatory changes that make gas and hybrid vehicles more economically attractive. Ford’s approach mirrors a wider shift among legacy automakers toward multi-energy portfolios, following the long-standing hybrid-first strategy championed by Toyota.
By prioritizing hybrids, extended-range electric vehicles and affordable EV platforms, Ford aims to reach profitability in its Model e electric division by 2029 while strengthening its core truck, van and commercial vehicle businesses. The strategy signals a more pragmatic phase of electrification, focused less on scale at any cost and more on sustainable returns in a rapidly changing global auto market.
Baburajan Kizhakedath
