Ford Increases Production of Hybrid F-150 Trucks

Home > Industry Analysis > Content

【Summary】Ford Motor Co plans to double the production of its hybrid F-150 pickup truck by 2024, as demand for all-electric vehicles remains limited due to high costs. The hybrid F-150, with a starting price of $55,000, is expected to become one of the top-selling hybrids in North America. Ford currently holds a 77% market share in hybrid trucks in the US and aims to increase the hybrid F-150's share from 10% to 20%. Unlike General Motors, Ford is focusing on hybrid cars rather than all-electric vehicles.

FutureCar Staff Sep 15, 2023 6:23 AM PT

Ford Increases Production of Hybrid F-150 Trucks

Ford Motor Co (F) is taking steps to address the limited demand for all-electric vehicles by slashing prices and increasing production of its gasoline-electric hybrid F-150 pickup truck.

By 2024, Ford plans to double the production of its hybrid F-150 truck, aiming to make it one of the best-selling hybrids in North America if sales meet expectations.

The appeal of hybrid vehicles lies in their price tag and driving range, which makes them a viable option for consumers who are not ready to transition to fully electric autos.

Ford currently holds a 77% share of the hybrid truck market in the U.S., thanks to the sales of its Maverick and F-150 models. While hybrids currently make up about 10% of F-150 sales, Ford aims to increase this to 20%. The starting price for the hybrid F-150 will be $55,000, catering to budget-minded buyers, with additional destination and delivery charges.

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

The high prices of all-electric vehicles, coupled with reduced driving range when towing a trailer, deter many consumers from purchasing them. Unlike General Motors (GM), Ford and Toyota are leaning towards hybrid cars, which offer a more affordable alternative.

The demand for hybrid vehicles has exceeded 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 committing.

However, Ford faces challenges as it negotiates with the United Auto Workers union, along with its rivals General Motors and Stellantis. The union has set a deadline for the three auto companies to reach independent agreements by September 14. The possibility of a strike at one or all of the auto plants looms.

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