Ford's Strategic Pivot to Hybrids

about 1 month ago

Valerie Titel

"And investors reacting positively to this strategy change. So Ford shares are higher by 1.6% comes after they announced a near 20 billion charge related to a sweeping unwind of its electric vehicle program. Essentially acknowledging it was going down a dead end with these large format EVs. They're now pivoting towards more hybrid vehicles. A big example of this is its decision to cancel its planned electric F-series trucks and convert those instead to an extended range hybrid. Now, Ford expects these moves to make its EV operations profitable by 2029 and it also boosted its 2025 guidance off the back of that."

The segment highlights Ford's strategy to cut losses from its failing large-format EV program by pivoting to hybrid vehicles. The cancellation of its electric F-series trucks and repositioning the portfolio is seen as a creative response to a dead-end strategy in the EV space. The commentary further notes that these initiatives should drive profitability by 2029, complemented by an improved 2025 guidance, reflecting a positive market reaction.

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