Ford’s big bet on electric cars didn’t pan out — and now it’s turning to hybrids and energy storage

Ford has announced a series of changes to its gas and electric vehicle businesses aimed at significantly increasing production of hybrid vehicles in the face of slowing electric vehicle sales. The automaker will also introduce some new products as part of this plan, including An extended-range EV version of its F-Series truck and battery storage systems to meet the growing demand from building artificial intelligence data centers.

The news comes after Ford weathered years of compounding losses from its faltering electric vehicle business. The 122-year-old company had previously aspired to surpass Tesla in battery electric car sales, but rising material costs and falling demand have since shifted that goal to… Financial albatross. For the past two years, the company’s electric vehicle division, Ford Model e, has done just that Lost more than $12 billionwith electric vehicle sales falling by more than 60 percent in November alone. Now, Ford says it’s ready to get rolling again.

Ford said hybrids will now be the main focus in the future. The automaker expects to produce gas-electric hybrids, extended-range electric vehicles (EREVs), and Smaller, more affordable electric cars To constitute 50% of its global volume by 2030, compared to only 17% today. Ford says it expects its hybrid and electric vehicle businesses to be profitable by 2029.

“Instead of spending billions more on large electric vehicles that now have no path to profitability, we are allocating that money to higher yield areas, more trucks and vans, longer-range hybrid electric vehicles, more affordable electric vehicles, and entirely new opportunities like energy storage,” said Andrew Fricke, president of Ford Model e and Ford Blue.

This transformation will not come cheap. Ford says it expects to record $19.5 billion in charges in 2025, mostly in the fourth quarter. The company also expects to receive $5.5 billion in “cash impacts” with the majority to be paid in 2026 and the remainder in 2027.

That won’t come without major changes to Ford’s workforce. Ford recently agreed to the solution Her partnership With the South Korean battery manufacturer SK On, which will lead to The automaker obtains full ownership From the BlueOval SK battery factory in Kentucky. This plant will be reused to build energy storage systems, as first reported previously Bloomberg. At least 1,600 employees are expected to lose their jobs as a result, although Frick said more jobs, as many as 2,100, are expected to be added over the years.

“This is positive for jobs and positive for how much we use these plants,” Frick added.

In terms of products, Ford expects so Replaces the first generation F-150 Lightning With the extended range version it can travel up to 700 miles on a single charge. The EREV will be produced at Ford’s Rouge Electric Vehicle Center in Dearborn, Michigan, with timing and starting pricing to be announced at a later date.

EREVs have a small internal combustion engine to recharge the electric vehicle’s battery to provide greater range. They operate as electric vehicles, with electric motors driving the wheels, and batteries that can be connected to EV chargers. The gas generator is intended to alleviate any concern about range — or, for truck owners, about towing capacity — that some customers may have about purchasing an all-electric vehicle.

The F-150 Lightning was previously thought to be the critical driver of broader electric vehicle adoption in America. After all, the battery-electric version of Ford’s best-selling truck was sure to be the big winner. But the high price, heavy battery, and range and towing concerns on the part of longtime truck owners have prevented the Lightning from breaking through as expected.

“It’s been a great truck for a lot of people, and it remains our best-selling electric pickup truck,” Frick said, “but we’ve also learned a lot from the first generation of electric vehicles, and we know that for many truck owners, towing heavy loads over long distances is a non-negotiable. That’s why our next generation F-150 Lightning will be an electric vehicle with a broader range.”

The repeal of the $7,500 federal electric vehicle tax credit by Donald Trump and Republicans also played a role. But electric trucks have always been a tough sell, as their large, expensive batteries push prices higher than most consumers are willing to spend. Now Ford is investing heavily All-new EV platform For more affordable models, making the F-150 Lightning an awkward fit for the company’s future lineup.

Energy storage is another way Ford plans to repurpose its previous investments in electric vehicles. Since it won’t be building many electric vehicles in the near future, the company plans to use prismatic lithium iron phosphate (LFP) batteries for energy storage systems to power data centers, among other uses. Energy storage “made a lot of sense as a natural adjacency for us,” said Lisa Drake, vice president of programs for technology platforms and electric vehicle systems. Ford could expand that business to include battery storage products for residential uses, but Drake said that will primarily be commercial customers.