Ford Moves to Electrify Its Lineup; Stays with Trucks ^
Ford gathered the media this week to say what virtually every other automaker has already explicitly stated—cars and trucks are getting electrified. The subtext was: Ford is not going to be left behind, but the company is also not going to step away from its cash cow pickups and SUVs.
Clean Fleet Rerport was there. Ford led with its trucks and followed with its SUVs, then brought hybrids and electric vehicles into the discussion as the clean up.
The Ford F-150 is the king at Ford. It’s been the best-selling vehicle in the U.S. for 37 years; the best-selling pickup for years beyond that. In its presentation, Ford boasted that the company brought in $41 billion on that model alone. If the F-150 were a stand alone company, it would have more revenue than Nike or Coca-Cola. Ford has dropped EcoBoost engines into the F-150 and intensified the use of aluminum throughout the truck, dropping weight and increasing fuel efficiency.
Up next for the pickup is a 3.0-liter diesel engine that comes later this year, followed by a hybrid powertrain in 2020. The goal as always is to increase efficiency while maintaining capability for customers.
In addition, Ford will reintroduce the compact Ranger next year.
After Trucks Come SUVs ^
Number two at Ford are SUVs. Ford’s Explorer broke the category open in the 1990s and they haven’t let up since. The compact Escape and the current Explorer carry the bulk of Ford’s SUV sales right now, but the just-introduced subcompact EcoSport will be part of an eight-vehicle lineup by 2020. Five of those SUVs will have hybrid powertrains.
Probably acknowledging the juggernaut that is cross-town rival Jeep, the new SUVs will not only have the environmental credentials from their hybrid powertrains, but will also stress off-road capability and performance (borrowing from the F-150 Raptor phenom).
As it showed with its move to aluminum in the F-150, Ford is not afraid to throw its volume products into radical change. That’s the rationale it presented to media this week. While not the full-shift of a Volvo committing to electrify all of its product line in a few years, Ford did say it would hybridize its high-volume models—the F-150, Mustang, Explorer, Escape and Bronco.
Ford promises that its next-generation hybrids will not be as space-intrusive as the current ones (check out storage in the Fusion and C-Max) and, at least as important for the customer, less expensive. The reduced packaging and cost are behind Ford’s expanded embrace of the technology.
Battery Electrics Too ^
With its only battery electric (BEV) offering the compact Focus, Ford has not made any inroads into either the market or public consciousness. At the last Detroit Auto Show, Ford teased its next BEV. The implication in the grainy video was it combined the performance of a Mustang with spaciousness of a crossover, but all under electric power.
The 2020 model will be the first of six BEVs Ford will put on the market during 2020-22.
Ford also renewed its commitment to the commercial vehicle segment (where it commands a 38 percent market share), though without any nod to increased efficiency (other than the new diesel engine in the Transit Connect).
In addition, Ford said it was bundling its driver-assist technologies in a package branded as Ford Co-Pilot360. It’s also moving to implement over-the-air- updates to software, something that Tesla has done for years.
Maybe one of most significant announcements Ford made is that its goal is to accelerate the new product cycle for the company. It’s current showroom product averages 5.7 years in age. By 2020 it says that age will drop to 3.3 years. The reliance on trucks and SUVs, which tend to have longer product cycles, may have lulled Ford into this type of product cycle. The good news, if as they cite, 50 percent of vehicles by 2020 could be SUVs, the customer expectation is they will respond like most passenger cars, which get a two-year refresh and full redo every four years.
The bottom line is Ford has stepped up to the bar and said it intends to complete with advanced technology and electrification, hedging only that they will continue to offer what they see as the vehicles most want—trucks and SUVs.
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