Ford Motor Co. pivots to gas-powered trucks over electric vehicles in Canada

Ford Motor Co.’s recent decision to shift focus from an electric vehicle hub in Canada to producing more gas-powered heavy-duty pickups sheds light on the current state of the auto market and the pressure to deliver profitable growth.

Trucks are in high demand, while electric vehicles are struggling to gain traction. Despite automakers’ commitments to electrification, they ultimately need to prioritize products that customers want to buy in order to turn a profit.

Ford’s announcement of a $3 billion investment to increase production of the Super Duty truck, popular among tradespeople and commercial customers, highlights the shift in priorities. The decision to overhaul a factory in Oakville, Ontario, originally intended for EV manufacturing, underscores the company’s focus on meeting the demand for trucks.

The delay of a three-row electric SUV until 2027 allows Ford to capitalize on emerging battery technology and improve the product, while also securing 1,800 Canadian jobs in the process.

While Ford’s EV unit has faced losses, its Ford Pro commercial business has been profitable, with the Super Duty truck generating an estimated $20,000 profit per vehicle. This financial incentive is a driving force behind Ford’s emphasis on trucks for now.

Looking ahead, Ford is exploring hybrid technology as a bridge to full electrification, aiming to offer hybrids across its entire lineup by 2030. The company is also moving forward with plans for an EV manufacturing campus in Tennessee, while rivals are converting older factories to EV production with government assistance.

Ford’s commitment to electrification remains strong, with plans to electrify the next generation of Super Duty trucks and develop a new, low-cost EV platform in California. The company’s strategic decisions reflect the evolving landscape of the auto industry and the ongoing push for sustainable transportation solutions.