Ford is losing billions on EVs, so they are turning to hybrids
Attention all hybrid enthusiasts: Ford Motor Company is currently in the process of creating a plethora of new hybrid vehicles.
During the second-quarter earnings announcement, CEO Jim Farley expressed that the company will produce more hybrid systems in the future. This statement comes amidst reports of increasing losses on their electric vehicles unit.
Automakers in Detroit have been boasting about the success of their all-electric vehicles, but some recent comments suggest that there is still a lot of hype surrounding hybrid cars. This viewpoint is more aligned with Toyota, a global leader in hybrid technology, which has faced criticism for being slow to embrace the transition to electric vehicles.
To clarify, Ford is not abandoning its commitment to promoting electric vehicles. However, the company recently announced that it may take longer than originally planned to roll out its EV program.
But even as it spends billions to ramp up EV production, it’s planning to bring more hybrid options to market, driven by the success of its current gasoline-electric options.
During Ford’s second-quarter earnings call, Farley expressed surprise at the popularity of hybrid systems for the F-150. He revealed that over 10% of F-150 pickup customers are choosing the hybrid model, and this percentage is continuing to rise.
According to Farley, Ford’s small Maverick pickup also has a hybrid version that has been very popular among buyers. In fact, over half of Maverick buyers, specifically 56%, opt for the $1,500 optional hybrid powertrain instead of the standard four-cylinder engine.
Amidst the automotive industry’s move towards pure electric vehicles, some may wonder why Ford continues to invest in hybrid systems. However, according to Jim Farley, the company’s CEO, hybrids remain popular with customers, particularly when combined with new capabilities made possible by batteries. One such capability is Ford’s “Pro Power Onboard” system, which allows owners to use the truck’s electricity to power tools or other devices at a job site or social gathering without the need for a separate generator.
According to Farley, many customers are interested in using the batteries in their vehicles for purposes other than just transportation. Ford is paying attention to this trend and adapting to customer needs. Ford has heavily marketed the F-150 Lightning pickup for its ability to power an entire house for several days.
Ford may have received feedback from customers that the demand for electric vehicles with extended driving ranges surpasses the willingness to transition to all-electric vehicles completely. According to executives’ statements on Thursday, the adoption of electric vehicles is progressing at a slower pace than initially anticipated.
For now, Ford can provide drivers who crave power but are hesitant about electric vehicles with a middle-ground option by offering hybrid choices in their internal-combustion selection.
Farley explained that the new vehicles wouldn’t be like the typical hybrid cars such as the Escape or Prius. He added that they will be introduced in a unique way that may surprise many people. Customers appreciate this approach.