When Ford launched the Mustang Mach-E in late 2020, the only electric vehicle (EV) General Motors was selling was the Chevrolet Bolt. Introduced in 2016, the Bolt was Chevy’s sole EV offering. While it was competent and affordable, it struggled to compete with newer EVs like the Mustang Mach-E.
In 2022, Ford launched the F-150 Lightning, a fully electric version of its best-selling F-Series pickup. Meanwhile, GM continued to rely on the Chevy Bolt but gradually expanded its lineup, adding the GMC Hummer EV in 2021 and the Cadillac Lyriq in 2022. Both the Hummer and Lyriq were built on GM’s new modular electric vehicle battery platform, which was heavily promoted through a public relations and advertising push.
According to Steve LeVine, author of The Electric newsletter, this was supposed to mark the beginning of a GM electric vehicle surge. The company aimed to produce six high-volume EV models by 2024, and a total of 30 models by 2025, with a target capacity of building one million EVs in North America by 2026.
However, as LeVine detailed, GM encountered significant difficulties scaling battery production, causing the company to miss many of its planned EV production milestones—a major setback for the automaker.
GM’s persistence and gradual approach may finally be paying off - Mark Phelan, Detroit Free Press
During this period, Ford Motor Company was pursuing an ambitious EV strategy of its own. The plan included ramping up production of the F-150 Lightning and introducing electric versions of popular SUVs like the Explorer. The company also sought to capture sports car enthusiasts by offering higher-performance versions of the Mustang Mach-E.
That all changed on August 21, when Ford shifted its focus to hybrid models and more affordable EVs. The revision came as Ford grew concerned about slower-than-expected EV market growth and mounting losses in its EV division.
Interestingly, while these market and profitability dynamics led Ford to adjust its strategy, General Motors has stayed the course. As Mark Phelan noted in the Detroit Free Press, GM’s persistence and gradual approach may finally be paying off. The automaker is set to cover a broad spectrum of the U.S. EV market across its Chevrolet, GMC, Buick, and Cadillac brands—from a redesigned, entry-level Chevy Bolt coming in 2025 to the ultra-luxury Cadillac Escalade IQ arriving later this year.
Some confuse the recent slowdown in EV market growth in the U.S. with a declining market, likely due to Tesla’s recent struggles. However, while Tesla’s sales may have plateaued, the overall EV market remains on a growth trajectory, with sales continuing to outpace the broader automotive market in 2024.
Ford is now focused on developing more affordable EVs, perhaps responding to shifting market dynamics and competitive pressures. However, as a full-line automaker, does it make sense for Ford to concentrate primarily on inexpensive EVs? To effectively compete in a growing market, a Ford will require a diverse lineup that includes both budget-friendly models and higher-end luxury and performance EVs—just as Ford offers in its internal combustion engine (ICE) business. Why should the EV strategy be any different?
It shouldn’t be, and Ford may come to regret this recent strategic shift.