Ford (NYSE:F) is set to increase production of its hybrid F-150 pickup trucks in 2024, aiming to advance the automaker's shift towards gas-electric powertrains. This move serves as a precautionary measure against the reluctance of U.S. truck buyers to fully embrace all-electric vehicles.
In 2024, Ford plans to prepare 20% of its most popular model-line in the U.S. market with gas-electric powertrains. The company has also announced that for the 2024 model year, the hybrid powertrain will be available at the same price as a truck equipped with a six-cylinder "EcoBoost" combustion powertrain.
Ford unveiled the 2024 F-150 lineup on Tuesday, showcasing the redesigned vehicle in advance of the Detroit auto show's public opening on Saturday.
The automaker’s strategic shift towards increasing the adoption of hybrid technology stands in stark contrast to its rival, General Motors (NYSE:GM), which is pursuing an exclusively all-electric approach for its future U.S. vehicle lineup, including its brands like Chevrolet and GMC, and their pickup models.
According to S&P Global Mobility, the number of hybrid vehicles is projected to increase by more than threefold over the next five years. This surge is expected to result in hybrids constituting approximately 24% of new vehicle sales in the United States by 2028.
The substantial sales of hybrid trucks would enable Ford to align with more stringent U.S. climate emissions regulations if demand for electric vehicles, like the F-150 Lightning pickup, falls short of expectations.
"Every hybrid we sell is more beneficial than a traditional ICE vehicle," said Ford Blue unit Vice President Andrew Frick.
Shares of F are up 1.29% in pre-market trading Wednesday morning.