Ford is switching gears from EVs: 'It was really the customer changing their decision'

Core Viewpoint - Ford is shifting its strategy away from fully electric large vehicles due to unprofitability and changing market dynamics, focusing instead on hybrids and smaller electric vehicles [1][2][3] Production Changes - The company will stop the production of electric commercial vans planned for the US and Europe, while increasing its hybrid car pipeline [2] - By 2030, Ford aims for 50% of its global volume to consist of hybrids, extended-range EVs, and electric vehicles, up from 17% currently [2] Sales Performance - In November, Ford experienced a 30% increase in hybrid sales, contrasting with a decline in sales of more expensive EVs, while more affordable EVs performed better [2] - The overall EV market share in the US decreased from 12% to 5%, influencing Ford's decision to pivot its production strategy [3] Future Plans - Ford plans to produce a family of smaller, efficient, and affordable electric vehicles, starting with a midsize pickup truck in 2027 [3] - The company estimates that the changes in EV production will cost approximately $19.5 billion, with most of the financial impact expected in the current quarter [3] Stock Performance - Following the announcement, Ford's stock price remained stable, having increased by about 38% since the beginning of the year [4] Recent Developments - Less than two months prior, Ford announced plans to increase F-150 pickup truck production by 50,000 units in 2026 and will pause production of the F-150 Lightning to prioritize gas and hybrid vehicles [5]