Ford: HVs for all models by 2030, postponing some EV launch plans
Scaling back CATL and SK On JV battery plants; Lithium supply contracts with 4 companies
2024/05/29
- Summary
- Expanding HV offerings, postponing the launch of some EVs
- Electric vehicle sales (U.S. in 2023): 73,000 EVs, 134,000 HVs
- Construction of battery plants with SK On and CATL; signed lithium supply contracts with four companies
- Ford Pro commercial vehicle business: Producing commercial vans in Romania and Turkey, with an EV version coming in 2024
- U.S. market: Demand for pickup trucks, SUVs, and hybrid vehicles drives sales
- New vehicle launch plans in the U.S.
- GlobalData Sales Forecast: Ford Group’s light vehicle sales will be 3.86 million units in 2027
Summary
Ford Motor Company (Ford) had previously set a goal of producing 600,000 electric vehicles (EVs) per year by 2023 and 2 million per year by 2026. However, after reporting its Q2 2023 results, Ford announced that it would adjust its electrification strategy, citing lower-than-expected EV (electric vehicle) sales and the possibility of longer and stronger-than-expected demand for internal combustion engine (ICE) vehicles and hybrid vehicles (HVs). The company plans to push back its target of producing 600,000 EVs per year by 2023 to 2024, and is now flexible about when it will reach the 2 million EV production capacity goal.
On April 4, 2024, Ford announced its plans to launch new EVs and HVs in the U.S. and Canada. According to the plan, HV variants will be introduced for all ICE vehicle models by 2030. As for EVs, the launch of some EVs, including a new 3-row EV and a new electric pickup truck, will be postponed for one to two years. Ford plans to continue development of new compact and low-cost EVs.
Future plans to introduce new EV models in 2024 include the E-Tourneo/E-Transit Courier, an EV version of the compact MPV/van, and the Puma Gen-E, an EV version of the B-segment crossover SUV Puma. The first EV model to be released will be the the new mid-size crossover electric SUV Explorer EV, which is based on VW's MEB platform. In 2025, the company plans to introduce a new sports electric crossover as the second model to use VW's MEB platform.
Ford has partnered with major battery manufacturers such as SK On Co., Ltd. (SK On) and Contemporary Amperex Technology Co., Ltd. (CATL) to build EV battery plants, but is considering scaling back or postponing construction due to slower customer demand in the EV market. Ford is also working to secure materials for EV batteries. In addition to building a positive electrode (cathode) material plant jointly with SK On, the company has signed lithium supply contracts with four companies.
Ford Pro, its commercial vehicle business unit, continues to perform well with an EBIT of USD 7.22 billion in 2023, USD 4 billion more than the previous year, due to increased demand for the F-Series Super Duty full-size pickup truck and the Transit full-size van. The company is ramping up production capacity at its plants in Romania and Turkey in preparation for the production of EV versions of vans and MPVs.
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| 2024 F-150 Lightning (full-size electric pickup truck) (Photo: Ford) | E-Transit Custom (mid-size electric van) (Photo: Ford) |
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