As Ford struggles amid the industry’s shift to EVs, the automaker plans to lean into its hybrids. In a move that mirrors Toyota, Ford is scaling back its transition to EVs to bet on hybrids.
Despite Ford’s EV sales hitting a new record with 8,958 electric vehicles sold in November, the automaker is scaling back.
Ford sold more F-150 Lightning models last month (4,393) than it did in the entire third quarter (3,503). The Lightning edged out Rivian’s R1T for the top-selling electric truck spot through November.
Despite this, Ford’s CEO Jim Farley explained on the company’s Q3 earnings call that he’s “so thankful we have kept our foot on the has to freshen our ICE and HEV products as we enter a changing market.”
Farley added that Ford Blue (Ford’s ICE business) “will be strong and a growing business for years to come.”
The automaker’s leader said that although Ford remains “bullish on Model e and our EV future,” the market is “a moving target.”
Ford to lean further into ICE, hybrids
Ford recently scaled back several EV initiatives. The company’s CFO, John Lawler, added that Ford is “slowing down several investments,” including around $12 billion in EV spending.
Lawler reiterated the stance last month at the 2023 Barclays Global Automotive & Mobility Conference. He said the company is not changing its strategy but rather “changing the pace and flow” of capital and capacity put in place.
This includes cutting planned production at its Marshall plant by about half, reducing inverter and motor capacity, and pulling back on vertical integration plans.
Ford’s financial leader said the company will lean into hybrids as a “bridge” to EVs. The comments mirror Toyota, which has notoriously stuck to its hybrid stance. Despite plans to accelerate its pace over the next few years with new tech, Toyota’s EV sales accounted for just 1% of its total volume last month.
Lawler said Ford “became a little bit complacent” on hybrids. He said hybrids were always a big part of the mix, and “with EV adoption slower, hybrids are going to be a bigger part.”
Electrek’s Take
Ford’s financial boss is overlooking a key piece of info – EV adoption is not slowing. Recent research from BloombergNEF shows “reports of an electric vehicle slowdown have been greatly exaggerated.”
Passenger EV sales are expected to reach 14 million this year, climbing 35% from 2022. In the US, Ford’s biggest market by far, sales are growing even quicker, with 50% growth expected this year.
As the report notes, many legacy automakers have launched products that are “not competitive on price, range or features.” As a result, EV makers like Tesla, Rivian, and BYD continue gaining market share. EV leaders, including Tesla, BYD, and Li Auto, will account for 7% of global vehicle sales this year compared to just 1% in 2020.
Other legacy automakers, like Hyundai and Volvo, are doubling down on EVs with competitive, unique models.
Volvo is launching its cheapest and smallest vehicle, the EX30, with starting prices under $35,000. Despite its compact size, Volvo expects to see big demand for the electric car.
Ford is about to face new competition with Tesla’s Cybertruck rolling out and new Silverado and GMC Sierra electric trucks launching next year. This could be a reason for Ford shifting plans to focus on hybrids like Toyota.
Pushing back investments now while others are surging ahead could put Ford further behind as the industy shifts to an all-electric future.
FTC: We use income earning auto affiliate links.More.
The California Air Resource Board (CARB) has withdrawn its request to enact the proposed Advanced Clean Fleets rule, which required fleets that are “well-suited for electrification” to reduce emissions through the phase-in of Zero-Emission Vehicles (ZEVs) and the banning of commercial diesel sales after 2035.
“Frankly, given that the Trump administration has not been publicly supportive of some of the strategies that we have deployed in these regulations, we thought it would be prudent to pull back and consider our options,” CARB chair Liane Randolph said in an interview. “The withdrawal is an important step given the uncertainty presented by the incoming administration that previously attacked California’s programs to protect public health and the climate and has said will continue to oppose those programs.”
Here’s hoping the BEVs and ZEVs have better luck next round.
Electrek’s Take
While some may celebrate the delay of the Advanced Clean Fleets rule, their celebrations will undoubtedly prove to be myopic and short-lived. The reality is that America is no longer the world leader in technology or transportation that backward organizations like the American Trucking Association believe it to be, and the fact is that delaying a transition to cleaner, more efficient technology will only put the US further behind its economic rivals in Asia and the Middle East.
Even before this Pyrrhic victory for American truck brands that have been slow to push BEVs into production, demand for diesel was at a generational low, and companies like Volvo, Renault, and Mercedes-Benz have been logging millions of electric miles on their deployed trucking fleets.
All of which is to say: if you thought it was going to be hard for American brands to catch up before, it’s going to be even harder now.
In an official announcement released at 8:15PM last night, Walmart-backed electric van company Canoo filed a voluntary petition for relief under Chapter 7 of the US Bankruptcy Code and will cease operations immediately.
“We would like to thank the company’s employees for their dedication and hard work,” said Tony Aquila, Canoo CEO and one of the company’s largest investors (according to the press release). “We know that you believed in our company as we did. We are truly disappointed that things turned out as they did. We would also like to thank NASA, the Department of Defense, The United States Postal Service (‘USPS’), the State of Oklahoma and Walmart for their belief in our products and our company. This means a lot to everyone in the company.”
As a result of the chapter 7 filing, Canoo will cease operations effective immediately, 8:15PM on 17JAN2025. The next step in the company’s dissolution will see a court-appointed trustee manage the liquidation of the company’s remaining assets.
Electrek’s Take
Rumors fueled by outspoken former employees of Canoo began circling late last year, with furloughed employees urging Oklahoma state leaders to “hold the electric vehicle company accountable” after it shuttered the OK production line that had received more than $100 million in state incentives.
The same employee claims that the company was being wildly mismanaged, and that what few Canoo vehicles the company said it had built in the Oklahoma plant were actually built in Texas, and that no vehicles were actually ever built in OK. “Nothing was functioning,” the unnamed employee said, speaking to local news channel KFOR. “There was no, there was not one robotics line that actually worked to fabricate a part.”
You could argue that the employees should also be held accountable for happily collecting paychecks without actually producing anything this whole time, but that’s a conversation for another day. For now, I’ll be mourning the loss of what could have been a fun little domestic off-roader, and hoping Canoo’s employees find a soft landing and better jobs elsewhere.
The US Department of Energy (DOE) today announced $1.2 billion in financing to replace Puerto Rico’s fossil fuel plants with solar and battery storage through 2032.
The DOE’s Loan Programs Office announced two conditional commitments and one loan closing to power producers in Puerto Rico. Each supports a project contracted with the Puerto Rico Electric Power Authority. The announcements include:
The closing of a $584.5 million loan guarantee to subsidiaries of Convergent Energy to finance a 100 MW solar farm with a 55 MW (55 MWh) battery energy storage system (BESS) in the municipality of Coamo and BESS installations in the municipalities of Caguas (25MW/100MWh), Peñuelas (100MW/400MWh), and Ponce (up to 100MW/400MWh)
A conditional commitment for a loan guarantee of up to $133.6 million to a subsidiary of Infinigen for a 32.1 MW solar farm with an integrated 14.45 MW (4.76 MWh) BESS, and a co-located standalone 50 MW (200 MWh) BESS expansion in the municipality of Yabucoa
A conditional commitment for a loan guarantee of up to $489.4 million to a subsidiary of Pattern Energy for three stand-alone BESS in the municipalities of Arecibo (50 MW/200 MWh), and Santa Isabel (50 MW /200 MWh and 80 MW/320 MW), and a 70 MW solar farm with an integrated BESS in the municipality of Arecibo.
If all are finalized, these projects would more than double LPO’s support for utility-scale solar generation and battery energy storage in Puerto Rico.
LPO provides low-cost financing and a rigorous due diligence process, making it a valuable resource for Puerto Rico as it works to rebuild an affordable, reliable, and clean energy system. As a result of reliance on imported fuel, the persistent threat of tropical storms, and underinvested infrastructure, Puerto Ricans today face average energy costs that are twice the US average – all while consuming only one-quarter of the energy of the US per capita.
LPO’s initial loan to a power producer in Puerto Rico, Project Marahu, closed in October 2024, and when complete will add more than 200 MW of solar and up to 285 MW of stand-alone energy storage to Puerto Rico’s grid.
Through its September 2023 partial loan guarantee to Project Hestia, LPO also supports virtual power plant (VPP)-ready rooftop solar and battery storage installations in Puerto Rico. As a nationwide project, Hestia’s sponsor is committed to at least 20% of installations under Project Hestia going to homeowners in Puerto Rico.
As part of its procurement plan, Puerto Rico Electric Power Authority seeks to install 1,500 MW of battery storage and requires a minimum capacity of storage to be co-located with each utility-scale solar project. Energy storage systems currently online in Puerto Rico are being dispatched every day.
When including Marahu, LPO’s closed and conditionally committed financing supports over 100% of the capacity Puerto Rico Electric Power Authority aimed to procure under its initial request for energy storage project proposals, the first of six.
If you live in an area that has frequent natural disaster events, and are interested in making your home more resilient to power outages, consider going solar and adding a battery storage system. To make sure you find a trusted, reliable solar installer near you that offers competitive pricing, check out EnergySage, a free service that makes it easy for you to go solar. They have hundreds of pre-vetted solar installers competing for your business, ensuring you get high quality solutions and save 20-30% compared to going it alone. Plus, it’s free to use and you won’t get sales calls until you select an installer and share your phone number with them.
Your personalized solar quotes are easy to compare online and you’ll get access to unbiased Energy Advisers to help you every step of the way. Get started here. –trusted affiliate link*
FTC: We use income earning auto affiliate links.More.