Ford Motor Co. is betting that hybrid vehicles will be the bridge toward an all-electric-vehicle future for perhaps longer than most people expect. It\u2019s a cautious strategy that has its admirers on Wall Street. <\/p>\n
Ford That\u2019s a \u201csubtle shift of strategy\u201d for Ford, but one that makes sense in the current reality, said Garrett Nelson, an analyst with CFRA. <\/p>\n On the call with analysts following Ford\u2019s quarterly results last month, Farley noted that Ford\u2019s hybrid offerings are extremely popular. About 10% of F-150 pickup trucks and 56% of smaller Maverick pickup trucks being sold in the U.S. are hybrids, he said. <\/p>\n \u201cWe are adding hybrid options across our [internal-combustion-engine] lineup,\u201d he said. \u201cAnd we expect to quadruple our hybrid sales in the next five years, and we were already No. 2 in the market last year.\u201d <\/p>\n The pure-battery EV market has become saturated, and Ford is indicating that it is willing to be flexible, CFRA\u2019s Nelson said. <\/p>\n \u201cBottom line, aside from Tesla Related: <\/strong>Electric vehicles vs. gas-powered cars: Which one is cheaper to buy and own?<\/p>\n \u201cConsumers are becoming much more educated,\u201d he said. \u201cYou can in a lot of cases go on pure battery power and not even use any fuel with these hybrids.\u201d <\/p>\n Japanese carmakers such Toyota Motor Corp. TM, HMC, Indeed, \u201chybrids are a much easier purchase in today\u2019s environment,\u201d said Karl Brauer, an analyst with iSeeCars.com. <\/p>\n \u201cThey cost less than electric vehicles, they don\u2019t involve range anxiety, and Ford has managed to make them quite practical in how it pairs the technology with the F-150,\u201d Brauer said. <\/p>\n Hybrids are more expensive to buy than internal-combustion-engine vehicles, but they are cheaper than electric vehicles because their batteries are significantly smaller \u2014 even those in plug-in hybrids, which are capable of driving several dozen miles solely on an electric charge. About a third of the cost of an EV is the cost of the battery. <\/p>\n Hybrids have one more critical advantage over EVs, Brauer said \u2014 they can be produced and sold for a profit.<\/p>\n Ford\u2019s strategy contrasts with a more aggressive EV push by General Motors Co. GM late Wednesday unveiled its Cadillac Escalade IQ, a luxury EV that starts at around $130,000 and has 450 miles of range. GM expects to begin making the vehicle in the summer of 2024, with sales beginning in late 2024. <\/p>\n GM\u2019s future lineup includes a number new EV models as well as electric versions of popular vehicles that were previously available only as gas-powered models. That includes an electric Chevy Equinox for next year and a return of the Chevy Bolt, among the cheapest EVs available in the U.S.<\/p>\n See also: <\/strong>GM is bringing back the Bolt. What do we know so far about the updated EV?<\/p>\n GM will cease production of the Bolt later this year but has promised to bring it back using the company\u2019s new shared EV platform. Observers expect the new Bolt to be available around 2025. <\/p>\n GM\u2019s EV strategy is generally viewed as more risky. <\/p>\n Tesla started a price war earlier this year, cutting prices of its EVs several times. Ford also cut prices, most notably on the F-150 Lightning, the electric version of a pickup truck that\u2019s been the best-selling vehicle in the U.S. since the 1980s. <\/p>\n Hybrids also do away with so-called charge anxiety, because their gas-powered engines kick in when needed. <\/p>\n
\n F,
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\n is not thinking about \u201cextremes\u201d between hybrids and EVs, company Chief Executive Jim Farley said recently. The automaker decided to keep investing in heavy-duty hybrid vehicles and has been surprised by their popularity, he said.<\/p>\n
\n TSLA,
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\n EVs, the vast majority of other EV models have sold very poorly,\u201d Nelson said, adding that although many people are not interested in EVs, hybrids could be an easier sell. <\/p>\n
\n 7203,
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\n and Honda Motor Co.
\n 7267,
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\n have taken that approach from the start, making much bigger bets on hybrids, and \u201cin hindsight that appears to have paid off,\u201d Nelson said. <\/p>\n
\n GM,
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\n Nelson said. <\/p>\n