Ford Increasing Production of Hybrid F-150 Pickups in Response to Sluggish EV Sales

author: FutureCar Staff    

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. The company plans to double the production of the hybrid F-150 by 2024, with hopes that it will become one of the best-selling hybrids in North America if sales meet expectations.

There is a demand for hybrid vehicles due to factors such as the price tag and driving range of all-electric vehicles. Many consumers are looking for alternatives that allow them to transition into more sustainable options without fully committing to electric autos. Ford recognizes this demand and aims to cater to these customers with its hybrid trucks.

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

If the sales of the hybrid F-150 meet Ford's expectations, it has the potential to rank among the top three most popular gas-electric models in the U.S., alongside Toyota Motor's RAV 4 compact SUV and Prius. The high prices of electric vehicles, combined with the reduced driving range when towing a trailer, have driven many consumers away. Ford and Toyota have chosen to focus on hybrid cars, which are more cost-effective options compared to fully electric vehicles.

The demand for hybrid vehicles has been outpacing production capacity for Ford's F-150s and Maverick pickups. These vehicles offer a middle ground for consumers who are not ready to fully embrace electric autos but still want to take a step in that direction. However, Ford faces challenges as it negotiates with the United Auto Workers union, along with its rivals General Motors and Stellantis. The companies must reach independent deals with the union before the deadline of 11:59 p.m. on Sept. 14, or else a strike at one or all of the auto plants may occur.

Despite these obstacles, Ford shares were trading up roughly 3% at noon Eastern Time on Wednesday, indicating positive market response to the company's plans to focus on hybrid vehicles and address consumer demand.

FutureCar Staff