Ford’s Hybrids Surge 22% While EV Incentives Removed, 2027 EV Pickup Plan
Ford’s hybrids now cover their cost premium and sold 228,000 units in 2025, a 22% year-over-year increase, while electric vehicle sales declined 14%. The company plans a major 2027 EV launch with a $30,000 midsize pickup on its new Universal EV Platform, despite removal of federal EV incentives.
1. Hybrid Profitability and Sales Growth
Ford’s hybrids now cover their cost premium and deliver higher margins than comparable gasoline models. In 2025, Ford sold 228,000 hybrid vehicles, up 22% year-over-year, contributing significantly to overall profitability despite a 14% decline in EV volumes.
2. Regulatory Headwinds for Electric Vehicles
The Department of Energy rescinded the fuel content factor provision that had boosted EV fleetwide fuel economy calculations, removing a key incentive for automakers. This change, alongside relaxed Corporate Average Fuel Economy norms, creates a headwind for Ford’s EV strategy and could pressure future margins.
3. 2027 EV Strategy and Universal Platform
Ford plans to debut a $30,000 midsize electric pickup in 2027 on its new Universal EV Platform, designed to underpin multiple electric models. CEO Jim Farley views the platform as essential for improving cost competitiveness and challenging both domestic and international rivals in the EV market.