Ford (Part 1): Focusing on EVs and Commercial Vehicles under the "Ford+" Business Strategy

Over 40% of global sales to be EVs by 2030; building 129GWh battery plant with SK Innovation

2022/03/30

Summary

Ford F-150 Lightning
Ford F-150 Lightning, EV version of full-size pickup truck (Photo: Ford)

  On May 26, 2021, Ford Motor Company (Ford) announced its new business strategy, "Ford+," which positions electric vehicles (EVs), connected technology, and commercial vehicle business as the pillars of growth. As for EVs, Ford aims to have over 40% of its global sales volume be EVs (electric vehicles) by 2030. For the commercial vehicle business, the company will launch a business division, Ford Pro, to develop a business model that not only sells commercial vehicles but also continues to provide related services such as charging and repair.

  Ford's sales volume in the U.S. in 2021 was 1,892,000 units, down 7.0% from the previous year. Although the new Bronco and Bronco Sport SUVs and the Mustang Mach-E, Ford's first mass-market EV, contributed to a sales increase, sales were lower than the previous year due to the end of production of most passenger cars and production cuts caused by semiconductor supply shortages. For 2022, Ford expects wholesale volume to improve by 10-15% due to the launch of new EV models and improved semiconductor supply.

  In its plan to introduce new models in the U.S., with the exception of the Mustang, the company is discontinuing low profitability passenger cars and focusing on SUVs and pickup trucks. In pickup trucks, the company will add a mid-size Ranger in 2022 and an off-road type Bronco Pickup in 2024. In SUVs, the company will discontinue the small EcoSport and the mid-size Edge, and launch a Mexican-made mid-size SUV in 2023, an all-new full-size Expedition in 2024, and a new compact Escape in 2025.

  As for its electrification plans, the company launched its first EV, the Mustang Mach-E SUV, in 2021, to be followed by the E-Transit commercial van and the F-150 Lightning full-size pickup truck in 2022. These reflect Ford's strategy of electrifying its most iconic models. In 2025, the company plans to launch an EV version of the Explorer mid-size SUV, as well as EV versions of three other Lincoln SUV models.

  Ford's global EV introduction plan will require approximately 240GWh of battery cell production capacity by 2030. Therefore, in addition to developing its own battery production capacity, Ford is also working with a number of battery suppliers. Through a joint venture with battery manufacturer SK Innovation Co., Ltd. (SK Innovation), the company plans to build two plants to produce 129GWh of batteries annually by 2025.


  This part, Part 1, of the report focuses on Ford's business strategy, sales situation and product strategy in the U.S., and electrification plans. Part 2 of the report will report on the situation and strategies in other regions, company performance, the outlook for 2022, and LMC Automotive's global sales forecast.

 

Related Reports:
U.S. battery electric vehicle strategies for GM, Ford and Stellantis (Dec. 2021)
Motor Bella 2021: OEMs expand EV model lineup in response to market demand (Nov. 2021)
Motor Bella 2021: U.S. demand for SUVs and light trucks steadily grows (Oct. 2021)
IAA Mobility 2021: VW and Ford reveal concepts and electric cars focusing on performance (Oct. 2021)
U.S. Fuel Economy Regulations Tightened: MY 2026 CO2 171 g/mile, CAFE 52.0 mpg (Sep. 2021)
Auto Shanghai 2021: NEVs of Non-Chinese OEMs (2) (Jun. 2021)
WCX 2021: Development of automotive connectivity and autonomy (May 2021)
Ford (Part 1): Collaboration with VW and targeted investment under new CEO (Nov. 2020)
Ford (Part 2): Rationalization and Aggressive Product Enhancement in Europe and China (Nov. 2020)

 

This report is for paid members only. Remaining 5 chapters remaining.
Free membership registration allows you to read the rest of the article for a limited time.

Click here for a free trial.