Ford Doubles Hybrid F-150 Pickup Production Amidst Sluggish EV Sales

author: FutureCar Staff    

Ford Motor Co (F) has announced plans to slash prices and increase production of its gasoline-electric hybrid F-150 pickup truck. This decision comes as higher costs continue to limit demand for all-electric vehicles.

The company aims to double the production of its hybrid F-150 pickup truck by 2024. If sales meet expectations, the hybrid F-150 truck is expected to become one of the best-selling hybrids in North America.

There is a demand for hybrid vehicles due to the price tag and driving range limitations of all-electric vehicles. Many consumers are looking for alternatives to fully electric autos, and hybrid vehicles provide a viable option.

Ford currently holds a 77% share in the U.S. hybrid truck market through its sales of the Maverick and F-150 models. Although only 10% of F-150 trucks sold are hybrids, Ford aims to increase this percentage to 20%. The starting price for the hybrid F-150 will be $55,000, making it more accessible for budget-minded buyers.

If sales of the hybrid F-150 meet Ford's expectations, it will rank among the top three most popular gas-electric models in the U.S., alongside Toyota Motor's (TM) RAV 4 compact SUV and Prius.

High prices of electric vehicles deter consumers, especially since towing a trailer reduces the driving range for pickups. Unlike General Motors (GM), which is pursuing an all-electric auto strategy, Ford and Toyota are leaning towards hybrid cars in the U.S., as they are more cost-effective.

The demand for hybrids has outpaced the production capacity for F-150s and Maverick pickups, as they appeal to those who want to take a step towards electric vehicles without fully transitioning.

However, Ford faces challenges as it negotiates with the United Auto Workers union. The union is driving a hard bargain with Ford, General Motors, and Stellantis. The three auto companies must reach independent agreements with the union before the deadline of 11:59 p.m. on Sept. 14, or risk a strike at their respective plants.

Despite these challenges, Ford shares were trading up approximately 3% at noon Eastern Time on Wednesday.

FutureCar Staff