Ford Motor Company is recalibrating its electrification strategy after years of mounting losses in its electric vehicle programs. As demand for battery-only EVs softens and development costs climb, the automaker is pivoting toward hybrid powertrains, extended-range electric vehicles, and a more cost-focused EV lineup.
In late 2025, Ford announced a major strategic reset that acknowledges the shifting realities of the North American vehicle market. The company said it expects to record approximately $19.5 billion in special items, including writedowns tied to its electric vehicle plans, as part of efforts to improve profitability and align production with customer demand.
The pivot includes discontinuing production of the current all-electric F-150 Lightning, a flagship EV pickup that has struggled to meet profit expectations. The next generation of the Lightning will instead use an extended-range electric vehicle (EREV) architecture that combines battery power with a gasoline generator to deliver longer range and greater utility.
Ford’s leadership says the shift is driven by market realities rather than a retreat from electrification. The company plans to concentrate its pure EV development on a new low-cost, flexible “Universal EV Platform” designed to underpin smaller, more affordable electric models targeted at mainstream buyers. The first vehicle based on the platform is expected to begin production in 2027.
At the same time, Ford is expanding its hybrid lineup, adding extended-range and multi-powertrain options across its roster. By 2030, the company expects roughly 50 percent of its global volume to consist of hybrids, extended-range EVs, and fully electric vehicles, up from about 17 percent in 2025.
Executives have linked the shift to several converging pressures. Consumer interest in plug-in battery electrics has softened following the expiration of federal tax credits in late 2025 and broader economic headwinds. At the same time, regulatory changes have eased mandates that had previously pushed automakers aggressively toward EV adoption. Industry analysts say customers still appreciate electrification but want more affordable, practical options that address range, cost, and charging infrastructure.
Ford’s hybrid sales have already shown strength relative to its battery-only models. In early 2025 reports suggested that the company was selling roughly twice as many hybrids as EVs, with hybrid vehicles such as the F-150 PowerBoost and Maverick helping bolster overall volume.
While Ford’s EV division continues to pursue electrification goals, the expanded emphasis on hybrids and multi-powertrain vehicles reflects a broader industry reassessment in North America. Automakers are now balancing long-term EV ambitions with the near-term imperative to protect profitability and meet consumer expectations for choice and value.
As the calendar turns to 2026, all eyes will be on how this blended strategy plays out in sales figures, margin performance, and competitive positioning — not just for Ford, but for the U.S. auto industry as a whole.
