Ford EV Strategy Shift Signals Focus on Affordable Hybrids

On November 15, Ford EV strategy shift took center stage as the Dearborn-based automaker announced a major realignment of its vehicle portfolio and manufacturing footprint. The move reflects changing customer preferences, cost pressures, and a sharper focus on affordability across electric, hybrid, and internal combustion offerings while protecting long-term profitability.
Ford EV Strategy Shift Driven by Market Reality
The Ford EV strategy shift marks a decisive response to slowing electric vehicle demand, particularly after the expiration of U.S. federal tax incentives. Ford confirmed it will discontinue select large electric vehicle programs and redirect resources toward compact, lower-cost models that better align with mainstream buyer expectations.
Key actions under this shift include:

• Reworking the F-150 Lightning into an electric vehicle supported by a gas-powered generator

• Accelerating development of smaller and midsize vehicles, including a new midsize pickup planned for 2027

• Prioritizing platforms that enable cost control and faster scalability

According to company leadership, this customer-focused approach is intended to create a more resilient and financially sustainable business model.
EV Demand Pressures Reshape Ford’s Product Mix
Ford’s Model E electric vehicle division has faced sustained challenges as battery costs remain elevated and affordability concerns influence purchasing decisions. EV sales fell sharply in recent months, contributing to mounting financial losses across the division. The automaker now plans to balance its portfolio more evenly across powertrains.
By the end of the decade, Ford aims to introduce five affordable vehicle nameplates, with the majority produced in the United States. The company expects hybrids, extended-range EVs, and full EVs to account for half of its global sales volume by 2030, up from less than one-fifth today.
Manufacturing Footprint Adjustments Under Ford EV Strategy Shift
As part of the Ford EV strategy shift, multiple production facilities will be repurposed to support trucks, gas-powered vehicles, and hybrids. The Tennessee Electric Vehicle Center will transition into the Tennessee Truck Plant, ending EV production and beginning assembly of next-generation Built Ford Tough trucks in 2029.
Additional changes include:

• Ohio facilities shifting to gasoline and hybrid vehicle production by 2029

• Workforce redeployment following the end of F-150 Lightning production

• Expansion of domestic manufacturing roles across U.S. plants

Approximately one-third of workers previously assigned to electric truck production will transition to gas and hybrid F-150 assembly lines.
Financial Impact and Capital Reallocation
Ford expects to record $19.5 billion in restructuring-related charges, with the majority recognized in 2026. This includes a significant asset write-down tied to its electric vehicle operations. Despite these charges, the company raised its earnings outlook for 2025 and reaffirmed its free cash flow guidance.
Capital is now being redirected toward higher-return areas such as:

• Commercial vehicles under Ford Pro

• Hybrid powertrains

• Battery energy storage solutions

• High-margin truck and van segments

The automaker continues to refine its EV manufacturing strategy, including platform standardization initiatives aimed at lowering production costs over time.