Ford Motor Company has announced a major strategic realignment under its Ford+ plan, shifting capital toward higher-return opportunities such as trucks, hybrids, affordable electric vehicles (EVs) and a new battery energy storage business, while scaling back select large EV programs amid changing market dynamics.
The automaker said the move is aimed at closely aligning with customer demand, improving profitability and strengthening its long-term growth trajectory. Ford plans to offer customers a broad mix of gas-powered vehicles, hybrids, extended-range EVs and fully electric models, with hybrids playing a central role in its future portfolio. By 2030, around 50 percent of Ford’s global vehicle volume is expected to comprise hybrids, extended-range EVs and EVs, up from 17 percent currently.
As part of the strategy, Ford will focus its North American EV development on a new low-cost, flexible Universal EV Platform designed to support a family of smaller, affordable electric vehicles. The first model on this platform—a midsize electric pickup—will be assembled at the Louisville Assembly Plant starting in 2027.
Ford is also expanding its hybrid lineup to meet varied customer needs, ranging from fuel-efficient hybrids to performance-oriented and exportable-power variants. For larger trucks and SUVs, the company is enhancing capability by introducing extended-range electric options. The next-generation F-150 Lightning will transition to an extended-range electric vehicle (EREV) architecture, offering an estimated range of more than 700 miles, and will be assembled at the Rouge Electric Vehicle Center in Dearborn, Michigan. Production of the current-generation F-150 Lightning has concluded as Ford redeploys workers to boost gas and hybrid truck output.
In a significant manufacturing shift, Ford is reinforcing its U.S. production footprint. The Tennessee Electric Vehicle Center at BlueOval City will be renamed the Tennessee Truck Plant and will produce new affordable gas-powered trucks starting in 2029. Meanwhile, the Ohio Assembly Plant will become a central hub for Ford Pro, producing a new gas- and hybrid-powered commercial van alongside Super Duty chassis cabs.
Another cornerstone of the strategy is Ford’s entry into the battery energy storage systems (BESS) market. Leveraging its U.S.-based battery plants in Kentucky and Michigan and advanced lithium iron phosphate (LFP) technology, Ford plans to begin shipping large-scale battery storage systems in 2027, targeting at least 20 GWh of annual capacity by late 2027. The business will serve growing demand from data centers, utilities and grid infrastructure, creating a new revenue stream beyond vehicles.
Financially, Ford expects these actions to significantly improve margins across Ford Model e, Ford Pro and Ford Blue. Ford Model e is now projected to reach profitability by 2029, with margin improvements beginning in 2026. However, the company anticipates recording approximately USD 19.5 billion in EV-related special items, largely in the fourth quarter of 2025, with cash impacts of around USD 5.5 billion spread across 2026 and 2027.
Reflecting confidence in its core business, Ford raised its 2025 adjusted EBIT guidance to about USD 7 billion and reaffirmed its adjusted free cash flow outlook of USD 2–3 billion.
Ford President and CEO Jim Farley said the shift represents a customer-driven approach to building a more resilient and profitable company, adding that capital is being redeployed into market-leading trucks, vans, hybrids and high-margin opportunities like battery energy storage.
With these changes, Ford aims to balance electrification with affordability, customer choice and financial discipline, while continuing its long-term goal of achieving carbon neutrality across vehicles, manufacturing and supply chains by 2050.
