February 6, 2025 – Jim Farley, CEO of Ford, stated in a financial earnings call on Wednesday that range-extending electric vehicles (REEVs) will play a crucial role in the American automotive market. His reasoning is straightforward: “Americans love big cars, especially big pickups.”
REEVs, which primarily use electric motors for propulsion but also carry a small internal combustion engine to generate electricity for the batteries, offer a practical solution for long-distance travel without relying on bulky batteries. These vehicles allow users to refuel in minutes, similar to conventional gas-powered cars.
Over a decade ago, BMW introduced a range-extending option for its electric i3 model, which garnered positive feedback. Now, the concept of range-extending vehicles is gaining renewed attention in the U.S., particularly in addressing the challenges faced by electric versions of large pickups and trucks. These larger vehicles require substantial batteries to meet consumer demands, driving up costs.
Farley pointed out that consumers are resistant to paying higher prices for electric vehicles, posing a dilemma for automakers. Despite a strong demand for larger vehicles, it remains challenging to produce electric pickups or SUVs that fit within consumers’ budgets.
He suggested that REEVs could be the answer, emphasizing that these vehicles should not be seen as a compromise like hybrids. According to Farley, consumer feedback from China indicates that they view these cars as electric vehicles rather than hybrids. “They don’t see them as hybrids or plug-in hybrids; these are electric cars. 95% of the mileage is electric, and consumers charge them every night. Customer satisfaction is higher because they are more affordable,” he explained.
REEVs use smaller batteries compared to their full-electric counterparts. Since they don’t require the complex powertrain integration of hybrids, adding a range extender is simpler, lowering production costs. Farley noted, “These cars have no transmission, no gears, no driveshaft, and no extra axles. The additional cost of installing a combustion engine is almost negligible.”
Furthermore, REEVs offer the benefits of electric cars, such as silent operation when the range extender is off, instant and smooth acceleration, and preheating or precooling without emissions.
