Ford plans to prioritize hybrid models in a major electric vehicle strategy reset

Ford Motor Company (NYSE:F) announced on Wednesday that it is taking additional actions to deliver a “profitable, capital-efficient and growing” electric vehicle business.

The new EV plan was noted to include adjusting the company’s North America vehicle roadmap to offer a range of electrification options designed to speed customer adoption – including lower prices and longer ranges. In its fully electric portfolio, Ford will prioritize the introduction of a new digitally advanced commercial van in 2026, followed by two new advanced pickup trucks in 2027 and other future affordable vehicles. Ford also realigned its U.S. battery sourcing plan to reduce costs, maximize capacity utilization, and support current and future electric vehicle production.

As part of the reset, Ford (F) is delaying production of a new plant in Tennessee to produce a next-generation all-electric pickup truck and canceling plans for a three-row electric SUV. Looking ahead, Ford (F) plans to prioritize the development of hybrid models, as well as electric commercial vehicles such as a new electric commercial van in 2026, followed by two pickup trucks in 2027.

The Detroit automaker noted that the electric vehicle market is rapidly evolving as Chinese competitors leverage advantaged cost structures including vertical integration, low-cost engineering, multi-energy advanced battery technology and digital experiences to expand their global market share. It was also highlighted that electric vehicle consumers are more cost-conscious than early adopters, looking to electric vehicles as a practical way to save money on fuel and maintenance.

“With pricing and margin compression, we’ve made the decision to adjust our product and technology roadmap and industrial footprint to meet our goal of reaching positive EBIT within the first 12 months of launch for all new models,” stated Ford (F) CFO John Lawler.

Shares of Ford Motor (F) were up 1.6% in premarket action on Wednesday. The Ford (F) decision is of interest to other major automakers such as General Motors (GM), Toyota (TM), Nissan (OTCPK:NSANY), Honda (HMC), Tesla (TSLA), and Rivian Automotive (RIVN).