With reduced maintenance, zero tailpipe emissions, and the ability to recharge right at home, electric vehicles offer some big benefits over combustion-powered cars and trucks. But, EVs are still not a perfect solution for every driver in all situations. Thanks to their generally high prices, concerns about range anxiety, and iffy public charging networks, electrics have been a hard sell for a lot of drivers in the U.S., which has caused some automakers, like Ford, to rethink their EV strategies.
Ford Pivoting To Extended-Range Electric Vehicles
The Blue Oval automaker has invested billions of dollars in developing and manufacturing electric vehicles. The company’s Mustang Mach-E SUV and F-150 Lightning pickup truck are respectable products that have been well-received, but neither model has taken the world by storm. As reported by Bloomberg, Morningstar Inc. analyst David Whiston said Ford has basically stalled in the electric vehicle market. “For the next couple years, it’s probably going to be pretty ugly for them on the EV side,” he added.
Given the outlay required to bring the Mach-E and Lightning to market as well as these vehicles’ less-than-stellar sales, profitability in the electric market is going to be tough for the automaker. This prompted CEO Jim Farley to scrap plans for a three-row electric SUV, though that’s not all.
Engineers are also hard at work developing so-called extended-range electric vehicles, broadly similar to plug-in hybrids, though there are some differences. A complicated (since you basically have two separate powertrains) but an effective intermediate step between combustion-powered vehicles and pure EVs, both EREVs and plug-ins provide the best of both worlds. When charged up, many motorists can do most of their daily driving purely on electric power, but you still have a traditional engine for when you want to take a longer trip. Some of these products will offer as much as 700 miles of range, ideal for cross-country drives.
According to Bloomberg, Ford is hard at work engineering the fundamental technology for these powertrains. Reportedly, the company will offer range-extended electric drivetrains in many of its most popular products including crossover and SUV models as well as the gargantuan Super Duty truck line. And, that last vehicle could be a game-changer given the popularity – and profitability – of these hard-working vehicles.
Unfortunately, these new powertrains are at least a couple years away, and rival automakers are set to introduce a raft of plug-in hybrids before Ford can complete its electrification pivot. Some 150 of these are expected to land on the U.S. market by 2026
Despite The News, EVs Aren’t Dead At Ford
Despite the challenges it’s faced, Ford is still developing electric vehicles, something the company’s executive chair, Bill Ford, confirmed at last month’s Detroit Auto Show. “We are working very hard on EV affordability,” he said, “because I think that will be the catalyst for much wider adoption.” Lowering price tags is a great way to sell more units.
Moving forward, the automaker has a dedicated team in California that’s developing a line of small, affordable EVs. These products are expected to start at less than $30,000, a price that addresses the high costs associated with many electrics today, though, again, these yet-unannounced vehicles are still likely years away. In the near-term, Ford may have to brace itself for financial hardship as it sorts out this new strategy.
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