Ford is investing more in trucks, hybrids, and reasonably priced EVs

Ford Motor Co. has announced a shift in capital investment toward trucks, hybrid models and more affordable electric vehicles as it works to restore profitability and impose tighter discipline on its electrification strategy.

The U.S.-based automaker said the revised approach reflects uneven demand for battery-electric vehicles, continued cost pressures and the need to focus on segments where Ford has clear scale and margin advantages. Pickups, commercial vehicles and fleet services remain core priorities, while several electric-vehicle programmes are being slowed, resized or deferred.

Hybrid vehicles are set to take on a larger role in Ford’s near- and medium-term product portfolio, particularly in North America. According to the company, hybrids provide lower upfront costs and greater flexibility for customers than fully electric vehicles, especially in regions where charging infrastructure is still inconsistent.

Ford reaffirmed its commitment to developing more affordable EVs but said future investments will be paced according to market demand and profitability benchmarks rather than volume growth alone. The company is concentrating on smaller vehicle platforms, lower battery costs and simplified architectures to improve economics.

Battery manufacturing continues to be a strategic focus through Ford’s relationship with South Korea’s SK On. However, the two companies recently announced plans to unwind their U.S. battery joint venture, BlueOval SK, by the end of 2026. Under the revised arrangement, SK On will continue supplying batteries to Ford through commercial supply agreements rather than a jointly owned manufacturing venture.

Formed in 2021, BlueOval SK was established to support Ford’s planned expansion of electric pickups and commercial vehicles in North America, with two battery plants under development in Glendale, Kentucky, and another facility in Tennessee. While construction of these sites is ongoing, the move away from a joint-venture structure signals a shift toward a more diversified, contract-based battery sourcing strategy as Ford recalibrates its EV plans.

Ford is also continuing to invest in Ford Pro, its commercial vehicles and services division, which includes software, telematics and fleet-management solutions. The unit remains one of the company’s most profitable businesses and a key source of earnings stability.

The automaker said the changes reflect a broader reassessment of expectations around the pace of electrification. While emissions reduction and electrification remain long-term goals, Ford emphasised that consumer demand, affordability and infrastructure readiness will ultimately determine the timing and scale of future investments.

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