Ford Follows Customers to Drive Profitable Growth; Reinvests in Trucks, Hybrids, Affordable EVs, Battery Storage; Takes EV-Related Charges

Core Viewpoint - Ford Motor Company is implementing a strategic shift in its Ford+ plan to focus on higher-return opportunities, including expanding its truck and van lineup and launching a new battery energy storage business to meet customer demand and drive profitable growth [1][2][4]. Group 1: Strategic Actions - The company will no longer produce certain larger electric vehicles due to eroded business cases from lower-than-expected demand and high costs [2]. - Ford aims to enhance customer choice by expanding its powertrain options, including hybrids and affordable electric vehicles, while focusing on a flexible Universal EV Platform for smaller models [3][6]. - The company plans to hire thousands of employees across the U.S. to support its strategic initiatives [5]. Group 2: Financial Projections - Ford targets profitability in its Model e segment by 2029, with annual improvements expected starting in 2026 [4]. - The company anticipates recording approximately $19.5 billion in special items, primarily in Q4 2025, with about $5.5 billion in cash effects [4]. Group 3: Product Development - By 2030, Ford expects around 50% of its global volume to consist of hybrids, extended-range EVs, and fully electric vehicles, up from 17% in 2025 [6]. - The first vehicle from the Universal EV Platform will be a fully connected midsize pickup truck, set to be assembled in 2027 [7]. - Ford will enhance its hybrid offerings and align its larger trucks and SUVs with customer demand for capability and range [8]. Group 4: New Business Ventures - Ford is launching a battery energy storage business to meet growing demand, repurposing existing battery manufacturing capacity in Kentucky [15][16]. - The company plans to produce advanced battery energy storage systems and aims to deploy at least 20 GWh annually by late 2027 [17]. Group 5: Manufacturing and Employment - The Tennessee Truck Plant will produce new gas-powered truck models starting in 2029, while the Ohio Assembly Plant will focus on assembling new gas- and hybrid-powered commercial vans [21]. - Ford's strategy reinforces its commitment to American manufacturing and aims to strengthen its leadership in the truck and van market [14]. Group 6: Environmental Goals - Ford is committed to becoming carbon neutral across its vehicles and manufacturing facilities by 2050, with ongoing investments in cleaner manufacturing and sustainable supply chains [22]. Group 7: Updated Financial Guidance - The company has raised its 2025 adjusted EBIT guidance to about $7 billion, reflecting continued business strength and cost improvements [23].