Bill Ford, the executive chairman of Ford Motor Company, has long been a champion of the company’s values and culture. In a recent statement, he posed a thought-provoking question: „How do we plan for the next 120 years in a way that my grandkids will have a stronger company than we have today?“ This question encapsulates Ford’s commitment to long-term sustainability and growth, as well as his dedication to upholding the core values that have guided the company since its inception.
One of the key decisions that Ford Motor Co. recently announced is the shift away from producing all-electric three-row SUVs in favor of hybrid SUVs. This strategic move is part of a broader effort to make the company’s electric vehicle business profitable sooner. John Lawler, Ford’s vice chair and chief financial officer, emphasized the importance of being nimble and responsive to customer feedback in shaping the company’s product lineup. By prioritizing the introduction of new, all-electric commercial vans and EV pickup trucks, Ford aims to offer customers a wider range of electrification choices while also ensuring profitability within the first 12 months of launch.
The decision to discontinue the production of the all-electric three-row SUV was driven by a focus on profitability and market demand. Lawler explained that the vehicle was not projected to be profitable within the desired timeframe, leading to a non-cash charge of $400 million for the write-down of certain manufacturing assets. While these actions may result in additional expenses and cash expenditures of up to $1.5 billion, Ford is committed to making tough decisions that will ultimately strengthen the company’s financial position and competitiveness in the EV market.
Despite the challenges facing the EV industry, Ford remains committed to its goal of remaking the company into a higher-growth, higher-margin, and more capital-efficient business. Lawler emphasized the importance of profitability in driving decision-making, noting that vehicles must align with customer preferences and market trends to ensure long-term success. By pivoting towards hybrid SUVs and other future EVs aimed at affordability, Ford is positioning itself for sustainable growth and profitability in the rapidly evolving automotive landscape.
In addition to its product strategy, Ford is also making strategic investments in its manufacturing capabilities. The company plans to launch a new generation of electric vehicles, starting with a commercial van to be assembled at Ford’s Ohio Assembly Plant in 2026. This will be followed by the rollout of a full-size EV pickup and an affordable mid-sized EV pickup in 2027, both of which will be assembled at Ford’s Tennessee Electric Vehicle Center. Ford is also planning to move battery production for the Mustang Mach-E from Poland to Holland, Michigan, in 2025, in order to qualify for tax credits under the U.S. Inflation Reduction Act.
Overall, Ford’s recent decisions reflect a commitment to innovation, profitability, and sustainability in the rapidly evolving automotive industry. By listening to customer feedback, prioritizing profitability, and investing in new electric vehicle offerings, Ford is positioning itself for long-term success and growth. Bill Ford’s vision for the company’s future underscores the importance of upholding the values and culture that have defined Ford Motor Company for over a century, ensuring that future generations will inherit a stronger and more resilient organization.