For many years Ford has seen car sales steadily decline because of the popularity of larger vehicles and the rise of electric vehicles (EV). Thus, the company has decided to stop production of cars except for the Mustang by 2020. The company will instead move towards manufacturing SUVs and trucks which are in greater demand. But there is a bigger change in their business model – the shift from fossil fuels to Ford hybrid and electric vehicles. This falls in line with the increasing trend of EVs around the world.
Initially, Ford plans to introduce hybrid versions of the F-150 and Mustang but this will further expand into their Escape and Explorer SUV lines, as well as their upcoming Ford Bronco, which is scheduled for release in 2020. The hybrid engines will have different functions among the vehicles. The F-150 will primarily use the gas engine to provide the main power with the electric motor acting as a mobile generator. The Mustang, on the other hand, will fully utilize the low-end torque of the electric motor to propel the vehicle and have the gasoline engine take over at higher speeds.
Ford’s decision to produce SUVs and trucks over cars has another desirable effect in that they provide much more space for batteries which should give their vehicles more power and range that consumers look for.
Advancements in EV technology have made the move to electrification easier. Ted Cannis, Ford’s global director of battery electric vehicles, said “When it was compliance cars, there’s nothing wrong with Ford Focus Electric. It’s executed well. But, it’s not too exciting. Let’s make them awesome. Let’s amplify what’s best about that for that user group and really make awesome vehicles.”
Ford not only sees the benefit of manufacturing EVs and hybrids in complying with federal mandates, but also as a viable and marketable product that has a huge growth potential. Customers are eager to purchase innovative vehicles with the latest technologies and at the same are also good for the environment.
The automaker has already embarked on developing a 300-mile range, Mustang-inspired small SUV to be sold by 2020. In all, the company hopes to introduce 40 electric or hybrid vehicles worldwide by 2022.
This was a stark contrast to 2016 when then CEO Mark Fields saw the EV market as soft despite the wildly popular Tesla Model 3 which had pre-orders that hit the 300,000 mark. The current CEO, Jim Hackett, is more optimistic about the trend and is already studying the details of their end-to-end operations for their electrification plan. Cannis claims that the company wants to operate more like a startup rather than a small division because it makes the entire company move towards a singular goal of electrification. This is necessary to hasten their development pace and help them catch up with the competition.
Ford is right to move faster. Competition in the electric vehicle space is fierce with major manufacturers like Nissan, Honda, GM, Jaguar, and the biggest one, Tesla, all making huge investments in EVs and introducing new and exciting vehicles. All Ford can show for currently is the Focus EV.
Their goal is to create electric crossovers, SUVs, and even hybrid F-Series trucks. Ford is building on consumer fondness for EVs right now despite some of the obvious limitations of the platform like range and charging locations. By leveraging Ford’s success in the crossover and SUV space with advanced technologies and battery electric platforms, they are betting big on the future of hybrids and electric vehicles and hope to become one of the big players in the space in the coming years.
Thomas Solutions offers work truck rentals in Ontario. Contact us at 1-877-479-1388 or email email@example.com for your truck or fleet rental and maintenance needs. With a fleet of over 800 vehicles and growing, Thomas Solutions has a wide array of straight trucks and work vehicles for lease or rent. We service all of Southern Ontario from our locations in Hamilton, Selkirk & Niagara, as well as through our growing list of service partners.