Ford Will Have Hybrids In Every Segment

In the earnings call, Ford CEO also informed about the plans to make affordable EVs as part of their next-gen products.

Ford CEO Jim Farley says that the company will offer hybrids in every segment of the market. This announcement comes during the earnings call where the executives were addressing the investors. The American auto giant, unfortunately, reported falling EV revenue last Wednesday. The only ray of hope was the growing sales of Mach-E after Ford cut its prices by 17%. This is an unequivocal indication that potential car buyers still hold affordability as the top priority.

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Ford CEO Plans Hybrids For Every Segment

After the run of poor sales of its electric cars, Ford has realized that affordability is the key to encouraging mass adoption. This was affirmed after the sales of the Mach-E picked up post price cuts. Farley mentions that Ford will be profitable with its next generation of products which will include affordable EVs. Also, it will add capacity for its well-established hybrids like F-150 PowerBoost and Maverick Hybrid. Note that Mach-E is the second-highest-selling electric SUV in the U.S. after the Tesla Model Y.

At the moment, the cash flow is being attained from the likes of the Maverick, F-150, F-250 and Ranger. Farley says, “To keep the business relevant and reduce emissions, Ford will have hybrids in every segment.” Furthermore, Ford is already trying for affordable electric cars like its Equinox EV. Going forward, the Blue Oval will try to leverage the image and popularity of the aforementioned products to transition to EVs via hybrids. Farley also said, “What’s really exciting for us is we see an opening in the market. We believe we can be profitable at $25,000 or $30,000.”

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The magic $25,000 number is looking more and more difficult to achieve as even Tesla lost interest in a more affordable EV than its Model 3. It is clear that the balance between profitability and affordability is hard to maintain. In this regard, Ford could leverage its superior and established supply chain, infrastructure and expertise which makes it sure to offer a profitable and sustainable $25,000 – $30,000 EV. Moreover, its Skunkworks Division might have something prepared in this domain.

Only time will tell if it is able to achieve this. Also, its replenished focus on hybrids could also be just what was needed to ensure a smoother transition to EVs from ICE cars. Therefore, we should brace for a hybrid onslaught from Ford in the immediate future, along with a slew of affordable EV launches thereafter.