Ford Sharpens Ford+ Strategy, Redirects Capital Toward Profitable Trucks, Hybrids, Affordable EVs and Energy Storage
Ford Motor Company has unveiled a major strategic reset designed to strengthen profitability, align more closely with customer demand, and reinforce its long-term growth trajectory under the Ford+ plan. The automaker announced a series of decisive actions that will see capital redeployed away from lower-return electric vehicle programs and toward higher-growth, higher-margin opportunities, including trucks, vans, hybrids, extended-range electric vehicles, and a newly launched battery energy storage systems business.
The updated approach reflects a shift in operating realities for the global automotive industry. Slower-than-anticipated adoption of certain large electric vehicles, rising costs, and evolving regulatory frameworks have reshaped the economics of EV development. In response, Ford is recalibrating its portfolio to emphasize affordability, customer choice, and sustainable profitability, while still maintaining its long-term commitment to electrification and decarbonization.
At the core of the announcement is Ford’s decision to discontinue plans for select larger electric vehicles where the business case has weakened. Instead, the company will concentrate its pure EV development efforts on smaller, more affordable models built on a new flexible architecture, while significantly expanding its hybrid and extended-range electric offerings.
“This is a customer-driven shift to create a stronger, more resilient and more profitable Ford,” said Jim Farley, president and CEO of Ford Motor Company. “The operating reality has changed, and we are redeploying capital into higher-return growth opportunities: Ford Pro, our market-leading trucks and vans, hybrids, and high-margin opportunities like our new battery energy storage business.”
Financial Impact and Path to Profitability
Ford expects the strategic actions to place its Model e electric vehicle division on a clear path to profitability by 2029, with annual improvements targeted beginning in 2026. The changes are also expected to lift earnings across Ford Blue and Ford Pro, with early financial benefits anticipated as soon as 2026.
As part of the transition, Ford plans to record approximately $19.5 billion in special items, primarily in the fourth quarter of 2025, with the remainder spread across 2026 and 2027. These charges reflect asset write-downs, restructuring costs, and program cancellations tied to the strategic shift. About $5.5 billion of the total will have cash impacts, most of which will be paid in 2026, with the balance in 2027.
Despite the restructuring, Ford reaffirmed its commitment to U.S. manufacturing and employment. The company and its subsidiaries plan to hire thousands of workers across the United States, reinforcing Ford’s position as the nation’s largest employer of hourly autoworkers.
Four Strategic Pillars for the Next Phase of Growth
Ford’s evolved strategy is built around four core pillars that collectively aim to balance electrification ambitions with commercial discipline and customer demand.
Expanding Customer Choice Across Gas, Hybrids and Affordable EVs
Ford expects that by 2030, roughly half of its global vehicle volume will consist of hybrids, extended-range electric vehicles (EREVs), and fully electric models, a significant increase from approximately 17% in 2025. Central to achieving this mix is the company’s new Universal EV Platform, a low-cost, highly flexible architecture designed for high-volume production of smaller, efficient, and affordable electric vehicles.
This next-generation platform is engineered to support a family of vehicles that can be sold profitably at scale and remain accessible to millions of customers. The first model based on the Universal EV Platform will be a fully connected midsize electric pickup truck, scheduled for production at Ford’s Louisville Assembly Plant beginning in 2027.
Alongside its EV efforts, Ford is doubling down on hybrids as a key growth lever. The company plans to expand its hybrid lineup with multiple configurations tailored to customer use cases, including fuel-efficient hybrids, performance-oriented hybrids, and systems capable of providing exportable power. For larger trucks and SUVs, Ford will enhance its electrification strategy with extended-range electric options that better meet customer expectations for towing capability, payload, and long-distance range.
A notable shift under the revised plan involves the F-150 Lightning. Ford has concluded production of the current-generation all-electric Lightning and will transition the next-generation model to an extended-range electric vehicle architecture. The future F-150 Lightning EREV will be assembled at the Rouge Electric Vehicle Center in Dearborn, Michigan.
Doug Field, Ford’s chief EV, digital and design officer, emphasized the significance of the move. “The F-150 Lightning proved that an electric pickup can still be a great F-Series,” he said. “Our next-generation Lightning EREV keeps everything customers love—instant torque, sub-five-second acceleration—and adds an estimated 700-plus miles of range while delivering exceptional towing capability. It’s a revolutionary product delivered in a far more capital-efficient way.”
Ford is also adjusting its commercial vehicle strategy. The company no longer plans to launch a previously announced electric commercial van for Europe, though it will continue to offer a full lineup of electrified vans in that market. In North America, Ford will replace a planned electric commercial van with a new, affordable gas- and hybrid-powered van aimed at Ford Pro customers. Production of this model will take place at the Ohio Assembly Plant.
These moves complement Ford’s broader commitment to launch five new affordable vehicles by the end of the decade, four of which will be built in the United States. By the late 2020s, nearly every Ford vehicle is expected to offer a hybrid or multi-energy powertrain option.
Strengthening Truck and Van Leadership Through U.S. Manufacturing
Ford’s revised strategy underscores its long-standing emphasis on trucks and commercial vehicles, while reinforcing its commitment to American manufacturing. Key facilities in Tennessee and Ohio will be repurposed to support new truck and van programs aligned with customer demand.
At the BlueOval City campus, the Tennessee Electric Vehicle Center will be renamed Tennessee Truck Plant. Beginning in 2029, the facility will produce all-new Built Ford Tough truck models, including affordable gas-powered trucks that expand Ford’s lineup and extend its leadership position. These products will replace a previously planned next-generation electric truck program.
Meanwhile, the Ohio Assembly Plant will become a central hub for Ford Pro operations. Starting in 2029, the plant will assemble the new gas- and hybrid-powered commercial van, alongside Super Duty chassis cabs, strengthening Ford’s dominance in the commercial vehicle segment.
Launching a Battery Energy Storage Systems Business
In a significant diversification move, Ford is entering the rapidly growing battery energy storage systems (BESS) market. The company is launching a new business unit that will include sales, service, and manufacturing capabilities to meet rising demand from data centers, utilities, and industrial customers seeking grid-support and energy resilience solutions.
Ford plans to repurpose existing U.S. battery manufacturing capacity in Glendale, Kentucky, to support this new business. By leveraging underutilized EV battery capacity, the company aims to create a high-margin, scalable revenue stream while reducing capital inefficiencies. Ford expects to invest approximately $2 billion over the next two years to scale the energy storage operation.
The Kentucky facility will manufacture advanced battery energy storage systems exceeding 5 megawatt-hours, including LFP prismatic cells, system modules, and 20-foot DC container solutions. Ford plans to bring initial capacity online within 18 months and scale to at least 20 gigawatt-hours of annual production by late 2027.
Recent joint venture agreements between Ford, SK On, SK Battery America, and BlueOval SK support this transition. Under the new arrangement, a Ford subsidiary will independently own and operate the Kentucky battery plants, while SK On will fully own and operate the Tennessee battery facility.
Separately, Ford will use its BlueOval Battery Park Michigan facility in Marshall, Michigan, to produce smaller amp-hour LFP cells for residential energy storage solutions. That plant remains on track to begin production in 2026 and will also supply batteries for Ford’s upcoming midsize electric pickup built on the Universal EV Platform.
Advancing Sustainability and Long-Term Climate Goals
Ford emphasized that the strategic changes remain fully aligned with its long-term sustainability objectives. The company continues to target carbon neutrality across its vehicles, manufacturing operations, and supply chain by 2050.
Ongoing investments in cleaner manufacturing processes, sustainable sourcing, and next-generation technologies will support emissions reductions across Ford’s entire ecosystem. By balancing electrification with affordability, hybridization, and grid-support solutions, Ford aims to play a broader role in the energy transition while maintaining financial discipline.
As Ford recalibrates its trajectory, the message is clear: the company is prioritizing customer demand, capital efficiency, and profitable growth—while laying the groundwork for a more resilient, diversified, and sustainable future.
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