Summary
- Ford planning to launch extended-range electric vehicles (EREVs) across multiple segments later this decade
- EREVs have battery, electric motors, and a gas-powered generator to recharge the battery
- Increased interest in EREVs due to concerns about the towing and hauling capabilities of pure battery-powered trucks
- Chinese automakers sold 623,000 EREVs in 2024, Stellantis expected to launch Ram 1500 Ramcharger with 690 miles of range in the U.S.
- Ford’s EREVs expected in 2027, could help make its EV business profitable after facing losses in the EV market in 2024
Article
Ford’s Plan to Launch EREVs Across Multiple Segments Later This Decade
Ford is reportedly planning to introduce extended-range electric vehicles (EREVs) in various market segments later in the decade. These vehicles will feature a combination of a battery, electric motors, and a gas-powered generator to recharge the battery, with the wheels being powered solely by the electric motors. Ford aims to take on Tesla and make affordable EVs accessible to the masses through its ‘skunkworks’ EVs project.
Challenges Faced by Pure Battery-Powered Pickup Trucks
Despite the popularity of pickup trucks in the U.S., pure battery-powered models have struggled to gain widespread acceptance. These electric trucks are often more expensive than their gas-powered counterparts, and buyers remain skeptical about their towing and hauling capabilities. Automakers are now turning to extended-range electric vehicles (EREVs) as a potential solution to address these concerns, with companies like Ram, Scout Motors, and now Ford, planning to launch EREV versions of their SUVs, crossovers, and pickups.
Understanding the Concept of Extended-Range Electric Vehicles
EREVs are equipped with an electric powertrain that includes a large battery and electric motors, along with a traditional internal combustion engine. The gas engine serves as an onboard generator to recharge the battery, while the wheels are exclusively powered by the electric motors. Owners can also recharge the battery directly, with the gas generator acting as a backup option when charging is not readily available. This technology offers a flexible and efficient approach to powering vehicles.
Growing Adoption of EREVs in Global Markets
EREVs are gaining traction in markets like China, where over 623,000 units were sold in 2024, according to data from the China Association Of Automobile Manufacturers. The U.S. is set to witness the introduction of EREV models like the Ram 1500 Ramcharger, offering an impressive range of approximately 690 miles. Despite Ford’s EREVs being slated for a 2027 debut, they are expected to play a significant role in enhancing the profitability of Ford’s EV business, which has faced financial challenges despite early entry into the electric vehicle space.
Challenges Faced by Ford’s EV Business Unit
Ford’s Model e EV business unit has encountered financial difficulties, with projections indicating losses of around $5 billion in 2024. While sales of models like the F-150 Lightning are gradually increasing, they still represent a small fraction of overall F-150 sales, which include gas-powered and hybrid variants. Ford has made strategic adjustments, canceling certain models and delaying the launch of others, in response to changing market demands and financial constraints.
Potential Impact of EREVs on the Electric Pickup Truck Market
Companies like Volkswagen-backed Scout Motors have also unveiled EREV models, with the Traveler SUV and Terra pickup truck offering both pure EV and EREV versions. Early indications suggest strong demand for EREVs, with the Terra pickup attracting a significant majority of reservations compared to its all-electric counterpart. As the electric pickup truck market continues to evolve, the introduction of EREVs could potentially transform the competitive landscape and drive consumer interest towards more sustainable and versatile vehicle options.
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