Ford Makes Big Electrification Commitment, Soft Plug-In Promise

MAR 15 2018 BY ERIC LOVEDAY 32

Earlier today, Ford made several announcements that were intended to send shock waves across the auto industry, as the automaker looks to boost its stock price and strengthen its position.

Ford Mach 1 Teaser

Most of the announcements (read them all here) pertained to trucks and SUVs (no surprise to us), but a few were on the electrification front (lots of conventional hybrids coming, again no surprise to us).

In the electric area, Ford re-affirmed a few past announcements, such as 6 BEVs by 2022 and plug-in hybrids rolling into most of its lineup (these are non-dedicated PHEVs and no specific number was announced).

Here’s the BEVs-specific announcement:

Battery electric vehicles: Battery electric vehicles (BEVs) represent more than a different
powertrain – they represent a lifestyle change for consumers, especially for those who have
never driven an electric vehicle.

That is why Ford’s strategy includes rethinking the ownership experience so it is more seamless
than with today’s gas-powered vehicles. That means making charging an effortless experience
at home and on the road as well as offering full-vehicle over-the-air software updates to
enhance capability and features.

“Throwing a charger in the trunk of a vehicle and sending customers on their way isn’t enough
to help promote the viability of electric vehicles,” said Sherif Marakby, vice president,
Autonomous and Electric Vehicles. “In addition to expanding our electric vehicle lineup, we are
redesigning the ownership experience to ensure it addresses customer pain points that currently
hold back broad adoption today.”

Ford’s BEV manufacturing plan will be more efficient. The company will halve floor space for
final assembly operations and reduce capital investment 50 percent. A projected 30 percent
improvement in labor efficiency will allow Ford to redeploy employees to do other jobs, including
assembly of battery packs (which are normally expensive and complex to ship).

Ford’s new performance battery electric utility arrives in 2020. It is the first of six electric
vehicles coming by 2022 as part of the company’s $11 billion global electric vehicle investment.

Check Out – Jaguar I-Pace Priced From $70,495 U.S.

That performance battery-electric utility is being referred to as an electric Mustang SUV, but we suspect that has more to do with performance than resemblance or even naming. We further expect this battery-electric BEV to be expensive too. This means it may end up competing with the likes of the Jaguar I-Pace, Audi e-Tron and Tesla Model X, all of which will have been on the market for years before the Ford arrive.

Ford adds:

Ford is going all-in on hybrids, offering customers more performance and capability yet serving as a hedge against higher gas prices.

Disappointingly, it seems the press release writer confused the words hybrid and battery-electrics.

Press blast below:

Ford Readies North America’s Freshest Lineup by 2020 with

Onslaught of Connected New Trucks, SUVs and Hybrids

 Building toward its vision of smart vehicles in a smart world, Ford is revamping its lineup,
building on truck, SUV and commercial strengths, investing in new propulsion and delivering
full connectivity to pave the way for over-the-air updates and the Transportation Mobility Cloud

 Ford brand targeting North America’s freshest lineup among full-line makers by 2020,
replacing more than 75 percent of its current portfolio and adding four new trucks and SUVs

 All-in push on hybrid-electrics to bring new capability and features to customers on highvolume,
profitable vehicles like F-150, Mustang, Explorer, Escape and Bronco; battery electric
vehicle rollout starts in 2020 with performance utility and six BEVs by 2022

 Ford announces Ford Co-Pilot360™, a package that includes standard automatic emergency
braking, blind spot warning and other driver assist features

 Redesigned organization and product development system sharpening focus on customers
and market insights to define bets; new tools and technology to improve speed-to-market by
reducing sketch-to-showroom and changeover time, adding to the company’s bottom line

DEARBORN, Mich., March 15, 2018 – Ford is revamping its lineup, building on truck, SUV and
commercial strengths, investing in new propulsion and delivering standard connectivity on new
vehicles, paving the way for over-the-air updates and the Transportation Mobility Cloud, an
open platform that will empower tomorrow’s mobility systems.

By 2020, Ford will offer North America’s freshest lineup among all full-line automakers, with its
average showroom age dropping from 5.7 to 3.3 years as it replaces three-quarters of its lineup
and adds four new trucks and SUVs.

Ford is going all-in on hybrids, offering customers more performance and capability yet serving as
a hedge against higher gas prices. All new Ford vehicles will have 4G LTE connectivity by the
end of 2019. Ford is also introducing Ford Co-Pilot360, a new driver-assist technology package
with standard automatic emergency braking and helps protect from the front, rear and sides.

“Our passion for great vehicles is stronger than ever,” said Jim Hackett, Ford president and
CEO. “This showroom transformation will thrill customers, drive profitable growth and further
build toward our future of smart vehicles in a smart world.”

Where Ford is Playing

Ford is strengthening its position in the following segments: trucks, SUVs (including off-road and
performance versions), hybrids, battery electric vehicles and commercial vehicles.
Trucks: Since the 2014 debut of the new F-150 with a high-strength, military-grade, aluminumalloy
body, Ford has gained 1.3 percentage points of share in the full-size pickup segment.

Average F-Series transaction prices lead the segment – up $6,700 per vehicle since 2014 –
because of high-end versions like Lariat, King Ranch and Platinum. Ford’s F-Series revenues
alone are higher than revenues of Fortune 500 icons such as Facebook, Coca-Cola and Nike.

Ford’s truck business will continue growing as the company adds new models and powertrains
with an eye toward continued growth in high-end trims. Some highlights include:

 2018: New 3.0-liter Power Stroke® diesel engine for F-150, updated version of the
popular F-150 Raptor

 2019: Ranger returns to midsize truck segment; new F-Series Super Duty debuts

 2020: New F-150 debuts with new hybrid powertrain featuring a mobile generator

SUVs: By 2020, Ford estimates SUV sales could account for 50 percent of U.S. industry retail
sales – one reason Ford is reallocating $7 billion in capital from cars to SUVs. By 2020, Ford
plans an industry-leading lineup of eight SUVs – five of which will offer hybrid powertrains and
one battery electric. Ford SUV sales are estimated to grow 20 percent – more than double the
industry rate – to more than 950,000 by 2020, according to LMC Automotive, and surpass 1
million by 2021.

After recently introducing an all-new model at each end of the SUV spectrum – the subcompact
EcoSport and full-size Expedition – Ford’s next push is in the highest volume SUV segments.
Entirely new versions of the Escape and Explorer debut next year; combined, these two models
make up 70 percent of Ford’s SUV volume.

Ford also plans to drive growth with two all-new off-road models: the new Bronco and a yet-tobe-named
off-road small utility – both designed to win a growing number of people who love
getting away and spending time outdoors with their families and friends.

“Ford helped start the off-road phenomenon and has majored in off-road capability for decades
– from the Bronco to the Raptor,” said Jim Farley, Ford president, Global Markets. “Now, we’re
ready to reclaim our rightful place as the off-road vehicle leader.”

Ford also will grow its lineup of performance SUVs. Two additions to the Ford Performance
lineup include the all-new Edge ST later this year, and an Explorer ST will soon follow. These
two new SUVs will help Ford Performance deliver on its promise of 12 new models by 2020,
and will help extend the division’s growth, which has risen 81 percent in the last four years.
Ford Performance sales are on track to grow another 71 percent by 2020, driven by SUVs.

Next-Gen Hybrid Electrics: Part of Ford’s new strategy includes going all-in on hybrids to bring
more capability to customers of our most popular and high-volume vehicles like F-150, Mustang,
Explorer, Escape and Bronco – and serve as a hedge for customers against higher gas prices.
Ford’s new hybrids will offer customers more space than today’s hybrids. On the F-150 Hybrid,
Ford will lean in to capability, such as the low-end torque for extra pulling power and the fact it
can serve as a mobile generator. Mustang Hybrid will be all about delivering V8-like
performance with more low-end torque.

“Hybrids for years have been mostly niche products but are now on the cusp of a mainstream
breakout,” Farley said. “The valuable capability they offer – plus fuel efficiency – is why we’re
going to offer hybrid variants of our most popular and high-volume vehicles, allowing our loyal,
passionate customers to become advocates for the technology.”

Ford’s new hybrid system is designed to be more efficient and less expensive than previous
generations. These lower costs – achieved through supply base relationships, using common
cell and component design and by manufacturing motors, transmissions and battery packs –
with the intention of lowering cost of ownership for customers.

Battery electric vehicles: Battery electric vehicles (BEVs) represent more than a different
powertrain – they represent a lifestyle change for consumers, especially for those who have
never driven an electric vehicle.

That is why Ford’s strategy includes rethinking the ownership experience so it is more seamless
than with today’s gas-powered vehicles. That means making charging an effortless experience
at home and on the road as well as offering full-vehicle over-the-air software updates to
enhance capability and features.

“Throwing a charger in the trunk of a vehicle and sending customers on their way isn’t enough
to help promote the viability of electric vehicles,” said Sherif Marakby, vice president,
Autonomous and Electric Vehicles. “In addition to expanding our electric vehicle lineup, we are
redesigning the ownership experience to ensure it addresses customer pain points that currently
hold back broad adoption today.”

Ford’s BEV manufacturing plan will be more efficient. The company will halve floor space for
final assembly operations and reduce capital investment 50 percent. A projected 30 percent
improvement in labor efficiency will allow Ford to redeploy employees to do other jobs, including
assembly of battery packs (which are normally expensive and complex to ship).

Ford’s new performance battery electric utility arrives in 2020. It is the first of six electric
vehicles coming by 2022 as part of the company’s $11 billion global electric vehicle investment.

Commercial vehicles: Ford, the only full-line brand with offerings that stretch from Class 1 to
Class 7, has a commanding 38 percent share of the U.S. commercial vehicle market. Last year,
it sold more CVs than the second, third and fourth place competitors combined.
To continue building on its commercial vehicle leadership, Ford plans to:

 Debut a new Transit with 4G LTE connectivity, coming in 2019

 Extend production of its E-Series cutaway and stripped chassis into the 2020s

 Offer Automatic Emergency Braking, Lane Departure Warning, Driver Alert System and
more on future E-Series, F-650, F-750 and F59 chassis products

Ford earlier this year introduced new versions of its Transit Connect Cargo Van and Transit
Connect Wagon, with both arriving at dealerships later this year.

Designing a better PD system

While delivering this new vehicle portfolio, Ford is continuously improving its operational fitness
by increasing product speed to market, improving quality and further reducing complexity, and
reducing cost. Driving improvements are the company’s new structure and new tools and
technologies that drive even more human-centered designs.

Ford’s new organization is designed to ensure company leaders view market and regional
demands holistically to decide which vehicles and features customers value most.

This drives more strategic and efficient investments, instead of trying to satisfy individual market
requests. The efficiencies benefit the company and individual regions like North America.
Ford also is moving to flexible vehicle architectures and more common parts across models,
cutting new product development time – from sketch to dealer showroom – by 20 percent. This
is helping Ford achieve its commitment to deliver $4 billion of engineering efficiencies. The
company intends to have the most efficient Product Development organization among full-line
automakers within five years.

Ford’s five flexible vehicle architectures – body-on-frame, front-wheel-drive unibody, rear-wheeldrive
unibody, commercial van unibody and BEV – are paired with module “families” that
address the power pack, electrical pack and vehicle configurations. Seventy percent of each
vehicle’s engineering will be driven from this new architecture approach, with 30 percent of
content – including grilles, hoods, doors and more – customized for each vehicle.

For instance, as more vehicles become connected, new analytics tools will show which vehicle
technologies customers use most often. This new data-driven insight will help determine which
features to grow and invest in and which to eliminate, reducing manufacturing complexity,
improving pricing, reducing incentives and building revenue over time.
Simplification is another key aspect of the plan. Ford already has reduced orderable
combinations on Ford SUVs by 80 percent since 2014, including a 97 percent reduction on the
new Edge coming later this year.

New manufacturing tools and technologies: Increased use of augmented and virtual reality
are helping reduce Ford’s plant changeover time by an estimated 25 percent, which adds an
average $50 million to the company’s bottom line per changeover.

Simulating various production processes and assembly line configurations in the virtual world
helps identify potentially hazardous maneuvers and fine-tune workflows before construction
even begins, saving an estimated 20 percent of tooling cost on each vehicle program.
The company also is increasing its use of collaborative robots that can perform jobs quickly and
repetitively, helping reduce the risk of injury to employees, freeing them up for more high-value
jobs and improving the company’s bottom line.

“We’re looking at every part of our business, making it more fit and ensuring that every action
we take is driven by what will serve our customers in a way that supports our fitness and
performance goals,” said Joe Hinrichs, president, Global Operations.

Note: Average showroom age based on Ford internal estimates and Bank of America Merrill
Lynch Car Wars 2018-2021 report.
# # #

Categories: Ford

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32 Comments on "Ford Makes Big Electrification Commitment, Soft Plug-In Promise"

newest oldest most voted
mx

It’s like ideas that have been locked up for 7 years are finally going to go into production.

Would have been happy with a 40 mile range CMax, but it never happened.

William

The Ford C-Max competing with the Chevy Volt on EV only range (40+ miles), now that would be interesting!

Ford better start to play Ketchup!

CarGuy

Agreed. I can get up to 32 miles in city driving with my C-max energi but with double the range it would be almost as awesome as a Volt.they get need to put the C max drivrtrain into an Escape and double the battery size and they would have a best seller.

Will

Ill believe it when i see it

Roy_H

Welcome to the 21st century, Ford.

(⌐■_■) Trollnonymous
ffbj

They also said they were dropping half a dozen underperforming models.
At least they have the F-150.

larry4pyro

I’ll know Ford is really on board when they offer an extended range pickup with excellent all electric performance as well as good all electric range comparable to the Workforce W-15.

Get Real

Then you will be waiting for a long time.

I predict that the laggard, legacy OEMs will introduce PHEV pickups after Tesla starts production on theirs.

Workhorse is interesting but as a startup, can they build them in numbers at a competitive price.

G2

FORD huh, never heard of them.

Texas FFE

Sounds like a backpedal to me, Ford was talking about 16 BEVs by 2022, now they are down to 6. If they are going to even have one BEV for the 2020 model year they need to start showing at least a concept NOW or they are never going to make it. At least I have my 2017 Focus Electric to see me through until something I really want and can afford comes along.

Jon

16 is worldwide, 6 for North America. Has been the plan all along.

Texas FFE

They don’t distinguish between North America and world wide in any of the articles.

Jon

It was in an investor press release when the announcement was made.

realdb2

I’m considering starting my own auto company. We won’t produce any cars initially but I will immediately announce 54 BEV models to be produced by the year 2025.

G2

Take my money now!!

Steven Loveday

+1

WadeTyhon

Call your first vehicle the ‘Mock 1’, buy some land in Nevada, and start fishing for Chinese investors. 🙂

John

Hahaha! Sheeple public.. 2022, empty promise for tomorrow just to gain a stock bump today.

Keep crankin’ out your F-150’s, Ford. Watch your numbers once Tesla and the others start rollin’ out pickup trucks..

Robb Stark

What happened to the affordable all electric 300 mile SUV they have throwing shade at Tesla now for years with?

JimGord

All sizzle, no steak.
Ford is way behind and still does not have a dedicated EV platform or even a PHEV with decent range.

nori

Hello I sell my instagram electric_vehicle_world, I am Nori Do you sell????

nori

You connect in my instagram

Spoonman.

Every time I’ve read this website on my iPhone for the last couple of days, I’ve gotten a redirect to a scam site – one of those “Congratulations iPhone user! You’ve been selected for our free gift card giveaway” ones with a popup notification. Could you guys check what ads you’re serving and get that addressed? I’m sure I’m not the only one.

Steven Loveday

It happens on many sites. We have been getting screenshots via email and have sent it to the person that deals with ads and such issues. Clear your cookies and cache and it should go away for awhile. It’s not necessarily site-related, it’s an ad-tracker, spam system of sorts. We are working on a way to stop it on our site. Please feel free to email us screenshots. Thank you!

Spoonman.

Really glad to hear you’re looking in to it. I’m sure those people are pulling a scam on the ad space sellers too, nobody wants to be serving those ads.

Steven Loveday

I just sent several more messages about this to the people that need to be made aware. Thanks so much!

Lou Grinzo

I really hate how cynical I’ve become about car maker announcements, but this is yet another one that makes me roll my eyes and say, “I’ll believe it when the cars are in the showroom.”

I’m convinced that we’ll see some significant breakthroughs in battery technology and EV design in the next few years. So overall I’m optimistic, but looking at all these “real soon now” promises, the car makers that are dragging their feet (looking at you, Honda and Toyota), and the endless predictions about solid state batteries, I wonder which companies will make the next wave of advancements.

EVShopper

best Thing that could happen is a Ford bankruptcy, and Tesla buying its assets and factories.

Anon

Too late Ford. Too late VW and the rest of you… So sick of empty automotive PR Releases / Promises and No Action.

Tired of waiting for an affordable, non-compliance EV that will meet 100% of my driving needs. This is why my money is going to Tesla.

Vote with your dollars people. Sadly, it’s the only thing corporations pay attention to.

David Murray

Ummm.. Yeah, that’s why they exist, you know, to make money. And right now people are voting with their money for more big trucks and SUVs that run on dinosaur juice. Ford is just building what people want. It’s up to us and companies like Tesla to change peoples’ minds so they start demanding more EVs.

Bill Howland

Its rather Ironic that FORD discontinued its “Transit Connect” Battery-Electric years ago. The new TC doesn’t even appear to be a minimum of a PHEV.

They are following GM in basically using the ‘electrified vehicles’ phrase to mean either Hybrid, Fuel Cell, PHEV or BEV – such that all their press releases are much less than meets the eye.