By Ford is known for making sportier hatchbacks like the Fiesta, and Focus to name a few. But the American manufacturer decided to discontinue the hatchback in 2018, as they decided to prioritize the more profitable trucks and large SUVs, Ford is now planning to make a comeback in the hatchback segment but there is a twist as the company won’t make an ICE version instead they will be introducing it as electric vehicles. This change in strategy reflects a broader reevaluation under the guidance of CEO Jim Farley, who has been vocal about adapting to the evolving demands of the automotive market.
In recent remarks at a conference, Farley emphasized the importance of affordability and profitability in the EV sector, especially for smaller vehicles. He expressed his desire for a practical and executable plan for launching new EVs, underscoring the necessity for these vehicles to be financially viable from the outset. Farley’s straightforward approach indicates a no-nonsense strategy towards Ford’s future offerings, focusing on tangible results over speculative promises. The interest behind Ford’s renewed interest in smaller EVs lies in the changing economics of vehicle ownership and operation.
Farley pointed out that for vehicles the size of the Escape or smaller, electric models offer significantly lower operating costs compared to traditional internal combustion engine vehicles like the Toyota Corolla, Honda Civic, or even Ford’s own Maverick. This economic advantage, coupled with environmental benefits, presents a compelling case for consumers and positions Ford to tap into a growing market segment. Furthermore, Farley highlighted the competitive landscape, specifically pointing to Chinese automakers as a “colossal strategic threat.”
This acknowledgement signals Ford’s intent to not only reenter the small car market but to do so in a manner that is competitive on a global scale. The move towards affordable EV hatchbacks could be a strategic manoeuvre to reclaim a foothold in segments of the market that have been dominated by international players and to address the increasing consumer demand for environmentally friendly and cost-effective transportation options. The company is focusing on affordability, functionality, and competitive positioning.
