Ford Updates EV, Hybrid Plans, Readies Manufacturing Plants

Rhea-AI Summary

Ford Motor Company continues to invest in a broad range of EV programs, expanding its hybrid electric vehicle offerings. By the end of the decade, Ford aims to offer hybrid powertrains across its entire Ford Blue lineup in North America. The company is re-timing the launch of its all-new three-row electric vehicles to 2027 at its Oakville, Ontario assembly plant. Ford's commitment to building a full EV lineup and profitable EV business is evident through various expansion projects and advanced industrial system developments.

Insights

Automotive Industry Analyst

The strategic shift by Ford to delay the launch of its three-row electric vehicles is a calculated move to align with market readiness and technological advancements. The automotive industry is witnessing a rapid transformation with electric vehicles (EVs) at the forefront. Ford's decision to retime its EV rollout to 2027 suggests a focus on capitalizing on emerging battery technologies, which could enhance vehicle durability and value for customers. This delay, while potentially disappointing in the short term, may position Ford more competitively in the long run by ensuring its products are technologically advanced and meet consumer expectations.

Furthermore, Ford's 86% increase in EV sales and 42% rise in hybrid sales in the first quarter of 2024 highlights the company's growing presence in the EV market. Ford's Industry 4.0 plant in Tennessee and the expansion of the Ohio Assembly Plant underscore its commitment to modernizing its manufacturing capabilities. The integration of wearable technology and virtual reality simulations in these facilities reflects a trend towards smarter, more efficient production processes which could lead to cost savings and improved product quality.

Financial Analyst

Ford's ongoing investments in EV infrastructure and technology development are indicative of a long-term strategy to secure a significant share of the evolving automotive market. The financial implications of such investments are twofold. On one hand, the capital expenditure required to build out these advanced manufacturing systems is substantial. However, Ford's approach to gradually ramp up production, as evidenced by the 2026 target for its next-generation electric truck, demonstrates a focus on quality assurance, which can be important for brand reputation and customer satisfaction.

The market's response to Ford's strategic decisions will likely be observed through its stock performance, as investors gauge the company's potential to lead in the EV sector against competitors. The delay in product launches may be seen as a risk management step, potentially avoiding the pitfalls of premature market entry. Investors will be monitoring Ford's ability to maintain a balance between growth in its EV segment and the profitability of its broader vehicle portfolio, including hybrids and traditional combustion engine models.

Market Research Analyst

The automotive market is increasingly driven by consumer demand for environmentally friendly and technologically advanced vehicles. Ford's intention to offer hybrid powertrains across its entire Ford Blue lineup in North America by the end of the decade reflects an understanding of this demand. The market for three-row EVs, which Ford is targeting with its delayed launch, represents a niche but growing segment that is expected to expand as consumers seek larger electric vehicles suitable for families and group transportation.

By leveraging its status as the No. 2 EV brand in the U.S., Ford can continue to build its brand equity in the EV market. The company's commitment to a differentiated and profitably growing EV business suggests a strategic focus on not just market share, but also on the financial health and sustainability of its EV operations. Market research will continue to play a critical role in informing Ford's product development and launch timelines to ensure alignment with consumer trends and preferences.

• Ford continues to invest in a broad set of EV programs as it works to build a full EV line-up. In parallel, Ford is expanding its hybrid electric vehicle offerings. By the end of the decade, the company expects to offer hybrid powertrains across its entire Ford Blue lineup in North America.
• Equipment installation is underway at the Tennessee Electric Vehicle Center assembly plant at BlueOval City, which aims to begin customer deliveries of Ford’s next-generation electric truck in 2026
• Expansion progresses at Ohio Assembly Plant in Avon Lake, to produce an all-new electric commercial vehicle for Ford Pro customers beginning mid-decade; construction progressing at BlueOval Battery Park Michigan, and BlueOval SK joint venture battery plants in Tennessee and Kentucky
• Ford reiterates commitment to its Oakville, Ontario, assembly plant as the company retimes the launch of its all-new three-row electric vehicles to 2027
• Design work continues on future EVs, including a flexible small and affordable EV platform by a skunkworks team in California

DEARBORN, Mich.--(BUSINESS WIRE)-- Ford Motor Company said today it is retiming the launch of upcoming electric vehicles at its Oakville, Ontario, assembly plant while continuing to build out an advanced industrial system to produce its next-generation electric vehicles, including greenfield construction and conversion of existing assembly plants.

The company continues to invest in a broad set of EV programs as it works to build a full EV line-up. These initiatives support the development of a differentiated and profitably growing EV business over time while Ford serves customers with the right mix of gas, hybrid and electric vehicles based on demand today. In parallel, Ford is expanding its hybrid electric vehicle offerings. By the end of the decade, the company expects to offer hybrid powertrains across its entire Ford Blue lineup in North America. In the first quarter of 2024, Ford’s electric vehicle sales increased by 86% and hybrid sales rose 42% versus a year ago.

“As the No. 2 EV brand in the U.S. for the past two years, we are committed to scaling a profitable EV business, using capital wisely and bringing to market the right gas, hybrid and fully electric vehicles at the right time,” said Jim Farley, Ford president and CEO. “Our breakthrough, next-generation EVs will be new from the ground up and fully software enabled, with ever-improving digital experiences and a multitude of potential services.”

Assembly plant in Oakville, Ontario

The transformation of Oakville Assembly Plant – a comprehensive overhaul of the plant from a gas vehicle assembly plant into an EV manufacturing complex – is set to begin in the second quarter, as planned.

Preparations continue for the market launch of Ford’s all-new three-row electric vehicles at the assembly complex in Oakville, Ontario, which the company said it will re-time to 2027 from 2025. The additional time will allow for the consumer market for three-row EVs to further develop and enable Ford to take advantage of emerging battery technology, with the goal to provide customers increased durability and better value.

“We value our Canadian teammates and appreciate that this delay will have an impact on this excellent team,” Farley said. “We are fully committed to manufacturing in Canada and believe this decision will help us build a profitably growing business for the long term.”

The company will work with Unifor to mitigate the impact the launch delay will have on its workforce at Oakville.

“We are committed to taking care of our valued Oakville employees through this transition,” said Bev Goodman, president and CEO, Ford Canada. “While this change requires a revision to the timeline, it will support a viable and growing future for our company, employees and dealers.”

BlueOval City

The creation of the BlueOval City campus – Ford’s new advanced auto production complex that includes the Tennessee Electric Vehicle Center assembly plant – is progressing on track. In addition to paint shop and vehicle assembly equipment, installation is also underway for nearly 4,000 tons of stamping equipment that will produce the sheet metal stampings for Ford’s next all-new electric truck.

Ford plans to begin customer deliveries of the new truck in 2026 and gradually ramp up production to help assure quality. The Tennessee Electric Vehicle Center will be Ford’s first Industry 4.0 plant, combining automation and connectivity to help elevate quality and efficiency.

Prospective employees can meet with Ford representatives at the new Ford Tennessee Discovery Center in Brownsville, Tenn., once it opens. The plant’s management team brings together strong leaders from around the world, including Ford veterans and talent from Tesla, Amazon, Meta, Toyota, FedEx and more. Community members also will be welcome to experience advanced manufacturing through virtual reality simulations at the Discovery Center.

Ohio Assembly Plant

Additionally, Ford continues its expansion of Ohio Assembly Plant in Avon Lake to produce an all-new electric commercial vehicle for Ford Pro customers beginning mid-decade.

Half of the structural steel is erected on the site, interior slabs are being poured, concrete walls are going up and masonry is beginning on interior walls. Ford expects to begin tool installation at Ohio Assembly Plant in spring 2025.

Employees at the plant, like at other Ford manufacturing facilities, will use wearable technology to support high-quality and efficient manufacturing.

Future EVs

Design work continues on Ford’s future-generation EVs. A skunkworks team in California is developing a smaller, low-cost, profitable, flexible EV platform capable of underpinning multiple vehicles at high volumes. Alan Clarke leads the growing team, which includes personnel from Auto Motive Power (AMP) following Ford’s acquisition of the EV energy management startup in late 2023.

In the meantime, construction is progressing at BlueOval Battery Park Michigan, in Marshall, Mich., and at the BlueOval SK joint venture battery plants in Tennessee and Kentucky.

About Ford Motor Company

Ford Motor Company (NYSE: F) is a global company based in Dearborn, Michigan, committed to helping build a better world, where every person is free to move and pursue their dreams. The company’s Ford+ plan for growth and value creation combines existing strengths, new capabilities and always-on relationships with customers to enrich experiences for customers and deepen their loyalty. Ford develops and delivers innovative, must-have Ford trucks, sport utility vehicles, commercial vans and cars and Lincoln luxury vehicles, along with connected services. The company does that through three customer-centered business segments: Ford Blue, engineering iconic gas-powered and hybrid vehicles; Ford Model e, inventing breakthrough EVs along with embedded software that defines exceptional digital experiences for all customers; and Ford Pro, helping commercial customers transform and expand their businesses with vehicles and services tailored to their needs. Additionally, Ford provides financial services through Ford Motor Credit Company. Ford employs about 177,000 people worldwide. More information about the company and its products and services is available at corporate.ford.com.

For news releases, related materials and high-resolution photos and video, visit www.media.ford.com.

View source version on businesswire.com: https://www.businesswire.com/news/home/20240404793241/en/

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Source: Ford Motor Company

FAQ

What are Ford's plans for hybrid powertrains in North America by the end of the decade?

Ford aims to offer hybrid powertrains across its entire Ford Blue lineup in North America by the end of the decade.

When does Ford plan to begin customer deliveries of its next-generation electric truck?

Ford plans to begin customer deliveries of its next-generation electric truck in 2026.

What is Ford re-timing the launch of at its Oakville, Ontario assembly plant?

Ford is re-timing the launch of its all-new three-row electric vehicles to 2027 at its Oakville, Ontario assembly plant.

What is the focus of Ford's skunkworks team in California?

Ford's skunkworks team in California is developing a smaller, low-cost, profitable, flexible EV platform capable of underpinning multiple vehicles at high volumes.

Where is Ford expanding its battery plants?

Ford is expanding its battery plants at BlueOval Battery Park Michigan, and at the BlueOval SK joint venture battery plants in Tennessee and Kentucky.