In the changing world of cars, Ford is doing well because they’re focusing on hybrid vehicles. This has been a smart move, especially when other companies making electric cars are having a tough time because of prices and less demand.
Ford’s Hybrid Sales Are Growing While Electric Cars Are Struggling
Ford recently said that they sold 36% more hybrid cars in the first part of 2024 compared to before. This makes Ford the third biggest seller of hybrid cars in the U.S., behind Toyota and Honda.
This growth is different from Ford’s electric car business, where they lost $1.3 billion in the same period. Jim Farley, Ford’s CEO, is happy they decided to make lots of hybrid cars years ago, saying, “I’m very thankful we did.”
The bigger electric car market is struggling because there aren’t enough cheap models. This is good for Ford, as more people are interested in their hybrid cars.
Before, some people thought hybrid cars were just a temporary thing until everyone had electric cars. But now, more people like them because they’re cheaper and use less fuel.
Hybrids Are Gaining Popularity as Electric Cars Stay the Same
The prices show why people are choosing hybrids more. On average, people paid $42,500 for hybrids in November 2023, which is much less than the $60,500 for electric cars. This is important because people want to save money, especially when the economy is uncertain.
Toyota and General Motors are also seeing these changes. Toyota is doing well because they have lots of hybrid cars, with an 84% increase in sales.
They’re not rushing into electric cars like some other companies. General Motors is also bringing back hybrids to North America because they see that’s what people want now.
Ford’s New Plan: Hybrids First, Electric SUV Later
Ford has decided to wait until 2027 to launch its new electric SUV, instead of the earlier plan for 2025. This change shows that Ford is focusing more on hybrids for now.
Jim Baumbick, a high-up at Ford, said that hybrids are still very important for Ford. He thinks Ford’s plan gives people more options to choose between regular, hybrid, and electric cars.
This balanced plan meets the needs of the market today and gets Ford ready for future changes in technology.
Other companies might look at Ford’s flexible strategy and learn from it. It shows how important it is to adapt to new technology and what customers want.
Tesla vs. Ford: Different Views on Cars
Elon Musk, the head of Tesla doesn’t like hybrids. He believes that electric cars are the only future. But even Tesla has seen that more people are buying plug-in hybrids.
Musk’s recent comments show a big difference in strategy between Tesla and Ford. They are betting on different futures for cars.
While Ford is sticking with hybrids, it’s helping them do well in today’s market and getting them ready for the future. Whether this plan will work out in the long run isn’t clear yet, but for now, Ford’s focus on hybrids is paying off and changing the car industry.
