Ford to introduce a plug-in model to take on Tesla

The immense popularity of the Ranger brand has prompted Ford to diversify by introducing a variant, a Ranger Plug-in Hybrid combining the best of electric and petrol engines.

The Ranger Plug-in Hybrid uses a 2.3-litre four-cylinder petrol engine and a small electric motor to provide customers with the option of zero-emissions motoring

Ford could change its name to the Ranger Motor Company in Australia, such is the success of its all-conquering, brand-defining dual-cab ute.

More than 70 per cent of its total sales in 2023 have been of that one model, which isn’t a healthy position for any car company.

That helps to explain why Ford Australia has jumped into the shipping business, taking out a three-year lease on a car-carrying container ship to exclusively shuttle Ranger utes and Everest SUVs directly from their Thailand factory to Australian ports; it simply cannot rely on outside factors interrupting supply of such critical models.

Clearly, however, Ford cannot rely on the Ranger to carry the entire brand, especially as sales of electrified vehicles continue to rise in the local market. Ford needs diversity, both in terms of models and technologies.

Its ingenious solution? Introduce a Ranger variant – specifically the Ranger Plug-in Hybrid, a new model that uses a 2.3-litre four-cylinder petrol engine and a small electric motor to provide customers with the option of zero-emissions motoring.

The Ranger PHEV will be able to drive for up to 45km on a single charge of its battery, with the petrol engine then able to take over to ensure the ute has a similar driving range to its diesel-powered variants.

In theory, this provides a benefit over a fully electric vehicle (BEV) as you can use the internal-combustion engine (ICE) to extend the range and quickly refuel, even if the battery only provides a relatively short range of operation.

The challenge for Ford is to now explain the benefits of this technology to potential customers, something Ford Australia CEO, Andrew Birkic, admitted won’t be easy.

“It’s a really, really interesting point,” Birkic told The Australian. “If you look at the data, clearly BEV has taken off at a rate of knots and there’s just not the breadth of PHEV cars in the market to do that. But I think there’s an opportunity for a greater education program.

“Yes, we’ve heard stories of people charging them once and then they just use the ICE. It’s going to come down to each individual person and as the education around this increases, I think you’re going to see a shift.

“At the end of the day, yes, we have great emotional vehicles, but we think we’re a practical, down-to-earth brand. If you look at the trucks we sell, we sell to the agricultural sector, to fleets that work in forestry, tradies. We are a pretty practical brand.”

The Ford Ranger plug-in hybrid will be able to drive for up to 45km on a single charge of its battery, with the petrol engine then able to take over

While adding an electrified Ranger is an obvious starting point for Ford’s diversification, the next priority for Birkic and his team is new models. That’s already begun with the recent launch of the iconic F-150 pick-up truck and the Mustang Mach-E electric SUV. These are two very different propositions but ones that play to the company’s strengths.

They also speak to Ford Australia’s reliance on its US headquarters for its future models. Fortunately, Australian consumer car tastes have tended towards those of America, with our preference for utes and SUVs. Ford USA is investing $US5.6 billion ($A8.8 billion) into a new EV-manufacturing base called Blue Oval City in Tennessee. This will likely see Ford Australia ramp up its EV offerings in the coming years, potentially starting with the F-150 Lightning, the all-new Explorer and eventually a rumoured second ute (likely an all-electric Ranger).

“The answer is, yes, our global counterparts will have a significant say [on what we offer] because of the sheer capacity of the global supply chain,” Birkic said.

“If you think about what we’re doing in the United States, with Blue Oval City, they’re massive investments and the Australian market is only so big, and we’re also right-hand drive.

“We have a pretty strong influence. We certainly put our hands up and we’re quite lucky we’re a strong global company.”

Birkic wouldn’t be drawn on exactly what new Ford models will come to Australia and when, but admitted that Ford Australia will continue “cherry picking the best of what Ford has to offer from both a combustion and EV point of view.”

The Mustang Mach-E will compete head to head with the wildly popular Tesla Model Y in terms of size and concept, but the Ford will start at a higher price (between $80k and $90k, most likely) so is unlikely to match its rival in terms of sales. Still, it will boost Ford’s electric plans, which have until now been limited to the E-Transit commercial van.

“We look at this holistically, we’re building a portfolio – we’re not just one individual product,” Birkic said. “What we want to do is build a really strong portfolio of electrification that appeals to a certain customer and we just can’t wait to get them here.”