Ford Developing Range-Extender EVs to Make Electrified Motoring More Affordable
Ford has announced plans to develop range-extender electric vehicles (REx) in order to make electrified motoring more affordable in larger vehicle segments. This decision comes after the company experienced a global decline in EV sales last year.
In a recent statement, Ford CEO Jim Farley confirmed that the company is currently working on SUV and pick-up platforms specifically designed for RExs. However, no official launch date has been provided at this time.
Unlike traditional plug-in hybrids, REx vehicles like the LEVC TX utilize a combustion engine that is not directly connected to the wheels. Instead, it is linked to a generator that either drives the electric motor or recharges the battery.
Farley referenced feedback from owners of RExs produced by Li Auto, a company that has seen success in the premium SUV market in China with this technology. He noted that customers view these vehicles as electric cars, using them for 95% of their miles on electric power and charging them nightly.
Despite the launch of new models like the Explorer and Capri in Europe last year, Ford’s EV sales saw a 9% decrease globally, totaling 105,000 units. Additionally, revenue from the company’s Model E division, responsible for EVs, dropped by 35% due to necessary discounts on models such as the Mustang Mach-E SUV and the F-150 Lightning pick-up in the US market.
Last year, Model E reported a $5.08 billion loss as it invested heavily in developing new electric models. Farley acknowledged that US customers, particularly those interested in larger vehicles, have been hesitant to transition to electric vehicles due to economic factors and concerns about battery technology.
Farley believes that shifting towards REx technology in larger vehicle segments could help lower prices for consumers. By eliminating components like transmissions, gears, and duplicate powertrains, the incremental cost of incorporating a combustion engine is minimal. This would allow customers to purchase an electric vehicle at a price point comparable to internal combustion engine vehicles.
