Ford Responds To Trump's EV Policy Shift With Push For Affordable Electric Models

Ford Motor Co. F plans on introducing more affordable EVs and electrified vehicles in its lineup as President Donald Trump curbs EV-related incentives in the U.S.

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What Happened: "When it comes to affordability, we have to compete. Not just in our industry but on a global scale as well." Bob Holycross, Ford's chief sustainability, environment and safety officer, told Bloomberg on Tuesday.

Holycross said that if Ford needed a more significant majority in the EV sector, the company would need to introduce more affordable EVs and electrified vehicles to its range.

He also shared that Ford is planning on introducing more Hybrid models in its lineup. Engineers at Ford are also working towards testing range-extended EVs, the report suggested. Range-extended EVs are electric vehicles that have a gasoline unit built in solely to help boost driveable range.

Ford's cheapest EV retails for $38,000, which is 22% more affordable than the standard price customers pay to buy cars in the U.S., the report suggests.

Why It Matters: The news comes following earlier reports that the Detroit-based automaker was working on an affordable EV platform to compete against the Chinese rivals.

However, as Trump axed the $7,500 Federal EV Credit in the U.S., Ford's F-150 Lightning EV pickup truck will become more expensive after the September 30 deadline.

Ford sales also surged 14.2% in Q2, which beat market expectations as the company said it sold 612,095 units in the second quarter of the year. The company also announced it would go ahead with its plans to invest $3B in the company's Michigan battery plant despite potential tax incentive loss.

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