**Ford Shifts F-150 Lightning to EREV Architecture, Plans Major Investments**
Ford Motor Co. has announced significant changes to its production strategy, including a transition of the next-generation F-150 Lightning to an Extended-Range Electric Vehicle (EREV) architecture. This new model will be assembled at the Rouge Electric Vehicle Center in Dearborn, Michigan. The company anticipates recording approximately $19.5 billion in special items, with the majority expected in the fourth quarter.
Looking ahead, Ford projects an adjusted EBIT of around $7 billion for 2025 and reaffirms its adjusted free cash flow guidance, trending towards the higher end of the $2 billion to $3 billion range. The production of the current generation F-150 Lightning has officially concluded, and Ford has decided against producing certain larger electric vehicles due to diminished business cases stemming from lower-than-expected demand, rising costs, and regulatory changes.
By 2030, Ford aims for about 50% of its global volume to consist of hybrids, extended-range EVs, and electric vehicles, a significant increase from the 17% projected for 2025. Additionally, the company will no longer pursue a previously planned electric commercial van for the European market.
In terms of new product development, Ford’s “Built Ford Tough” pickups will be manufactured at BlueOval City in Tennessee, while a new gas and hybrid van will be produced at the Ohio Assembly Plant. The company also plans to hire thousands of new employees in the U.S. over the next few years.
Ford is launching a Battery Energy Storage System (BESS) business, repurposing its existing battery manufacturing capacity in Glendale, Kentucky. The company plans to begin shipping BESS systems in 2027, targeting an annual capacity of 20 GWh. Furthermore, Ford intends to replace the planned electric commercial van for North America with a new, affordable commercial van that will include gas and hybrid models.
The Ford Model E is now expected to achieve profitability by 2029, with improvements anticipated to start in 2026. To support these initiatives, Ford plans to invest approximately $2 billion over the next two years to scale its battery energy storage system business.
**FAQ**
*What is the significance of Ford’s shift to EREV architecture for the F-150 Lightning?*
The shift to EREV architecture allows Ford to enhance the F-150 Lightning’s range and efficiency, aligning with the company’s broader strategy to increase its electric vehicle offerings and meet growing consumer demand for sustainable transportation options.
