Ford Broadens Electrification Strategy to Reach More Customers, Improve Profitability, Continue to Reduce CO2
Ford Broadens Electrification Strategy to Reach More Customers, Improve Profitability, Continue to Reduce CO2 Ford
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Ford Expands Electrification Choices and Adjusts Electric Vehicle Rollout
DEARBORN, Mich., Aug. 21, 2024 – Ford Motor Company is taking additional actions to deliver a profitable, capital-efficient, and growing electric vehicle business and add even more propulsion choices for customers that generate lower CO2 emissions.
Adjusting the Vehicle Roadmap
The plan includes adjusting the company’s North America vehicle roadmap to offer a range of electrification options designed to speed customer adoption – including lower prices and longer ranges. In its fully electric portfolio, Ford will prioritize the introduction of a new digitally advanced commercial van in 2026, followed by two new advanced pickup trucks in 2027 and other future affordable vehicles. Ford also realigned its U.S. battery sourcing plan to reduce costs, maximize capacity utilization, and support current and future electric vehicle production.
Sustainable Development Goals
- Goal 7: Affordable and Clean Energy
- Goal 9: Industry, Innovation, and Infrastructure
- Goal 11: Sustainable Cities and Communities
- Goal 12: Responsible Consumption and Production
- Goal 13: Climate Action
Focus on Commercial Vehicles
Ford will focus its next generation of electrified and digitally advanced vehicles on commercial vans, mid-size and large pickup trucks, and long-range SUVs. These segments provide Ford with competitive advantages and are areas where customer adoption of electric vehicles can be accelerated. The company will offer a range of electrification options designed to speed customer adoption, including lower prices and longer ranges.
New Electric Vehicle Models
In its fully electric portfolio, Ford plans to introduce an all-new commercial van in 2026, followed by two new pickup trucks in 2027. The commercial van will be produced in Ohio, while the pickup trucks will be based on a platform designed by Ford’s California skunkworks team and assembled in Tennessee. These new models will contribute to Ford’s goal of significantly reducing carbon emissions over time.
Affordable Electric Vehicle Platform
Ford’s new affordable electric vehicle platform marks a major step forward in the company’s strategy to bend the cost curve on electric vehicles. This platform will allow Ford to introduce multiple vehicle styles for both retail and commercial customers at a faster pace, with more personal digital customization. The platform is designed to be cost-efficient and scalable, enabling Ford to offer a range of affordable electric vehicles.
Battery Sourcing and Cost Reduction
Ford has realigned its battery sourcing to be more efficient and contribute to lower overall costs in its electric vehicle portfolio. The company is partnering with LG Energy Solutions and BlueOval SK to manufacture cells for its electric vehicles. This strategic sourcing approach gives Ford flexibility in manufacturing across multiple segments and electrified platforms as the market continues to evolve. Ford is also investing in lithium iron phosphate (LFP) battery production, which will further reduce costs and make electric vehicles more affordable.
Update on Electrification and Profitability
Ford will provide an update on its electrification, technology, profitability, and capital requirements in the first half of 2025. This update will showcase the progress made towards achieving the Sustainable Development Goals and outline Ford’s plans for a sustainable and profitable electric vehicle business.
SDGs, Targets, and Indicators in the Article
1. Which SDGs are addressed or connected to the issues highlighted in the article?
- SDG 7: Affordable and Clean Energy
- SDG 9: Industry, Innovation, and Infrastructure
- SDG 11: Sustainable Cities and Communities
- SDG 12: Responsible Consumption and Production
- SDG 13: Climate Action
- SDG 17: Partnerships for the Goals
2. What specific targets under those SDGs can be identified based on the article’s content?
- SDG 7.2: Increase substantially the share of renewable energy in the global energy mix.
- SDG 9.4: Upgrade infrastructure and retrofit industries to make them sustainable, with increased resource-use efficiency and greater adoption of clean and environmentally sound technologies and industrial processes.
- SDG 11.6: By 2030, reduce the adverse per capita environmental impact of cities, including by paying special attention to air quality and municipal and other waste management.
- SDG 12.2: By 2030, achieve the sustainable management and efficient use of natural resources.
- SDG 13.2: Integrate climate change measures into national policies, strategies, and planning.
- SDG 17.16: Enhance the global partnership for sustainable development, complemented by multi-stakeholder partnerships that mobilize and share knowledge, expertise, technology, and financial resources.
3. Are there any indicators mentioned or implied in the article that can be used to measure progress towards the identified targets?
Yes, the article mentions or implies several indicators that can be used to measure progress towards the identified targets. These include:
- Share of renewable energy in Ford’s electric vehicle portfolio
- Reduction in carbon emissions over time
- Introduction of a new digitally advanced commercial van in 2026
- Introduction of two new advanced pickup trucks in 2027
- Development of a low-cost, highly efficient electric vehicle platform
- Utilization of hybrid technologies for three-row SUVs
- Realignment of battery sourcing to reduce costs and maximize capacity utilization
- Percentage of annual capital expenditures dedicated to pure electric vehicles
- Localization of battery production to qualify for tax credits
- Start of lithium iron phosphate (LFP) battery production in 2026
Table: SDGs, Targets, and Indicators
| SDGs | Targets | Indicators |
|---|---|---|
| SDG 7: Affordable and Clean Energy | 7.2: Increase substantially the share of renewable energy in the global energy mix. | – Share of renewable energy in Ford’s electric vehicle portfolio |
| SDG 9: Industry, Innovation, and Infrastructure | 9.4: Upgrade infrastructure and retrofit industries to make them sustainable, with increased resource-use efficiency and greater adoption of clean and environmentally sound technologies and industrial processes. | – Introduction of a new digitally advanced commercial van in 2026 – Introduction of two new advanced pickup trucks in 2027 – Development of a low-cost, highly efficient electric vehicle platform |
| SDG 11: Sustainable Cities and Communities | 11.6: By 2030, reduce the adverse per capita environmental impact of cities, including by paying special attention to air quality and municipal and other waste management. | – Reduction in carbon emissions over time |
| SDG 12: Responsible Consumption and Production | 12.2: By 2030, achieve the sustainable management and efficient use of natural resources. | – Utilization of hybrid technologies for three-row SUVs |
| SDG 13: Climate Action | 13.2: Integrate climate change measures into national policies, strategies, and planning. | – Reduction in carbon emissions over time |
| SDG 17: Partnerships for the Goals | 17.16: Enhance the global partnership for sustainable development, complemented by multi-stakeholder partnerships that mobilize and share knowledge, expertise, technology, and financial resources. | – Realignment of battery sourcing to reduce costs and maximize capacity utilization – Localization of battery production to qualify for tax credits |
Source: media.ford.com
