In a move signaling the shifting winds in America’s auto market, Ford announced it would halt production of its all-electric F-150 Lightning pickup until January, pointing to slowing demand for battery-powered vehicles. This decision, effective mid-November, comes on the heels of several price cuts Ford has already made to the F-150 Lightning earlier this year amid sluggish sales and quality-control pauses.
The iconic Detroit automaker, synonymous with the gasoline-powered workhorses that helped build America, is now re-evaluating its ambitious, costly push into the electric vehicle (EV) market. Instead, Ford has decided to lean more heavily into hybrids, vehicles that blend gasoline and electric engines, offering customers familiar reliability while boosting fuel efficiency.
Ford’s caution on EV production aligns with a broader realization across the industry: consumers are hesitant to fully embrace EVs, especially for work trucks like the F-150. With concerns over range, charging infrastructure, and upfront costs, many consumers still see hybrids as a more practical option for balancing eco-friendliness with day-to-day convenience. Ford’s hybrid-focused strategy signals a notable pivot, one that traditional truck buyers may be glad to see, even as EV manufacturers face challenges in making electric trucks the default.
In August, Ford canceled its plans to release a new three-row electric SUV, shifting those resources into more immediately profitable ventures, such as hybrids. Ford stated that it would “continue to adjust production for an optimal mix of sales growth and profitability,” reflecting what many analysts see as a smart recalibration in a challenging economic environment. CEO Jim Farley has been vocal about the need to lower EV production costs to make electric vehicles more accessible, noting that skyrocketing EV costs have hindered growth and interest in the segment.
Despite Ford’s push, EV sales remain a small portion of its overall truck sales. Sales of the F-150 Lightning, for example, may have doubled last quarter to 7,100 units, but that’s still only 3.6% of all F-Series sales. This week, Ford’s stock took a 10% hit after the company reported third-quarter net income of $900 million, a figure dampened by a $1 billion charge following the SUV project’s cancellation. With losses on its EV investments projected to reach $5 billion by the end of 2024, the company is clearly feeling the financial strain of its high-stakes EV push.
Farley recently introduced a new performance system tying employee bonuses directly to progress on key goals like quality control and cost reduction, suggesting a tougher accountability approach within Ford’s workforce. Bonuses for managers have been cut to 65%, signaling a company-wide push for responsibility and efficiency. “I’m proud of the progress, but we’re not satisfied at all,” Farley remarked during the third-quarter earnings presentation.
In recent years, Ford has been vocal about its commitment to electrification, but it appears that consumer preferences and economic realities are steering the company back toward its roots with hybrid technology. Ford’s recent pause on EV expansion—and increased focus on hybrids—could well be a sign that the company is aiming to meet its customers where they are, not where industry trends might want them to be.
With this rebalancing act, Ford is aiming to protect its core market while tempering its losses on the EV front. As hybrid technology takes precedence, Ford is sending a clear message to investors and customers alike: its top priority is maintaining the quality, dependability, and profitability that have been Ford’s trademarks for over a century. This shift will likely be welcomed by traditional buyers who still rely on internal combustion engines for their rugged, reliable performance and aren’t quite ready to gamble on full electric power just yet.
