Ford's Taking Action To Compensate For Its Weak EV Progress

On Tuesday, Ford Motor (NYSE: F), Honda Motor Co Ltd (NYSE: HMC) and Bayerische Motoren Werke Aktiengesellschaft (OTC: BMWYY) agreed to form a new vehicle-to-grid company to help EV owners save money by sending energy back to the electrical grid. Additionally, Ford revealed its 2024 F-150 lineup with which its showed it is joining Toyota Motor (NYSE: TM) in pursing hybrid technology in response to its EV sales lag. With this move, Ford made a sharp turn from an all-electric strategy like the one its rival General Motors (NYSE: GM) is pursuing with its future U.S. vehicle lineup.

Ford Is Pursuing The Hybrid Footsteps Of Toyota

On Tuesday evening, Ford revealed its redesigned 2024 F-150 lineup at an event ahead of the Detroit auto show's public opening that is scheduled for Saturday. With this pivot towards hybrid technology, Ford and Toyota are now the last automakers standing for gas-electric hybrid powertrains in the U.S.

Doubling On Hybrid Trucks

In response to its EV setbacks, Ford will be doubling production of hybrid F-150 pickup trucks next year. Ford revealed plans to equip 20% of its best-selling model-line in the U.S. market with gas-electric powertrains next year, with the hybrid powertrain coming at the same price as a combustion powertrain. If these sales meet expectations, the hybrid F-150 could become one of the three best-selling gas-electric models in the United States, in line with Toyota Motor RAV 4 SUV. Toyota is also offering a hybrid powertrain in its Tundra pickups, with the hybrid Tundras making about 24% of the Tundras that Toyota sold in the U.S. until June 30th. During this period, Ford sold roughly about six times as many F-series trucks.

ChargeScape To Accelerate The Expansion Of Smart Charging 

Founded by Ford, Honda and BMW, ChargeScape, will create a cost-effective platform to connect automakers, EV owners and electric utilities. The mission of ChargeScape is to help simplify the logistics of EV charging. Automakers won’t have to go through the hassle of negotiating individual deals with utility providers. Through ChargeScape, utilities will be able to access energy from a variety of EVs using the platform. EV owners will be able gain financial benefits through a variety of charging and energy-sharing services. While coordination between EV makers, owners and utilities is crucial for effective energy management, EV owners will still have control over their charging and energy usage choices as throught the platform, they will be able to see when’s the most “grid-friendly” time to charge their EVs through “flexible and managed schedules.” 

Together, BMW, Ford, and Honda aim to accelerate the expansion of smart charging and vehicle-to-grid solutions, increase benefits for EV owners, while supporting the stability of the grid as ChargeScape also plans to develop products to help EV owners share the energy of their EVs with the grid during times of peak demand through vehicle-to-grid applications.

DISCLAIMER: This content is for informational purposes only. It is not intended as investing advice.