The Core Problem: Ford is underpricing the Hybrid to meet Government CAFE standards

[X17Ridgeline]

On October 21, 2021, I ordered a Hybrid Maverick XLT Lux Pkg, AutoPilot 360, SIBL, which by all standards I considered to be a fantastic value proposition; many of you have done similarly. I hoped to get my truck by May but now I realize Christmas is more realistic. Thank you to everyone on this website who has provided insight about the Maverick phenomena.

But what is the core reason for this imbalance between demand and supply? I have not seen this discussed.

Why is the high-tech more expensive to produce Hybrid model Maverick priced LOWER than the tried and true Ecoboost engine? Answer: CAFÉ standards.

For years the federal government has set average fleet gasoline mileage standards for automakers (Corporate Average Fuel Economy). These are increasing every year and rising into the 40 MPGs and 50 MPGs in years to come as electric vehicles are figured into the mix. Each presidential administration fights over the exact numbers but I believe the 2021-2022 numbers are 41-43 MPG fleet average for cars, SUVS and light trucks.

In order for Ford to meet these numbers they need to sell lots of electric and hybrid vehicles. The Maverick Hybrid has a 37 MPG average which helps bring up their numbers and thus they can sell more inefficient Explorers and regular F-150s.

Ford is subsidizing the Maverick Hybrid to meet government regulations and it needs to have this vehicle to sell in high volumes since they no longer sell fuel efficient cars like the Focus or Fiesta.

Anyone who has an order in for a Maverick 2022 Hybrid should thank Ford for the price subsidy. With the cost of gasoline today Ford may realize that they don’t need to underprice the MY23 Maverick Hybrid. In fact it would make sense if the Hybrid was a premium price to the EcoBoost Engine in 2023.

So I am looking on the bright side. Thank you Ford for my 2022 Christmas present.

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[Braderick]

Battery costs are very high.

Ford is off-setting the expense of the hybrid using a $1,000+ markup on the ECOboost., while balancing CAFE.

The Maverick was designed, as it was, but it exists because Ford needed it.

As consumers, we benefit...if/when the vehicles arrive.

Ford will maximize the Maverick with MANY variants, but the base hybrid will always be limited.

 

[Landric]

Isn't the Maverick Hybrid the cheapest Hybrid vehicle on the US Market? It offers a lot of utility and excellent economy for the low price of entry. I'm sure it is helping CAFE standards whether it is making money or not for Ford. There is something to be said from a marketing standpoint for offering the cheapest hybrid. Manufacturers like Kia and Hyundai traditionally undercut most others on price. In this case Ford has managed to bring a hybrid to market (well in theory) that undercuts the usual value leaders.

 

[bombast]

While it's quite possible the hybrid is underpriced to meet emission goals, I think it's less clear as to whether the hybrid is actually more expensive to build than the 2.0L Ecoboost. It wouldn't surprise me at all if the battery's cost was offset by a cheaper engine, a cheaper transmission, and lower expected warranty fulfillment requests over the life of said warranties.

 

[Leand60]

On October 21, 2021, I ordered a Hybrid Maverick XLT Lux Pkg, AutoPilot 360, SIBL, which by all standards I considered to be a fantastic value proposition; many of you have done similarly. I hoped to get my truck by May but now I realize Christmas is more realistic. Thank you to everyone on this website who has provided insight about the Maverick phenomena.

But what is the core reason for this imbalance between demand and supply? I have not seen this discussed.

Why is the high-tech more expensive to produce Hybrid model Maverick priced LOWER than the tried and true Ecoboost engine? Answer: CAFÉ standards.

For years the federal government has set average fleet gasoline mileage standards for automakers (Corporate Average Fuel Economy). These are increasing every year and rising into the 40 MPGs and 50 MPGs in years to come as electric vehicles are figured into the mix. Each presidential administration fights over the exact numbers but I believe the 2021-2022 numbers are 41-43 MPG fleet average for cars, SUVS and light trucks.

In order for Ford to meet these numbers they need to sell lots of electric and hybrid vehicles. The Maverick Hybrid has a 37 MPG average which helps bring up their numbers and thus they can sell more inefficient Explorers and regular F-150s.

Ford is subsidizing the Maverick Hybrid to meet government regulations and it needs to have this vehicle to sell in high volumes since they no longer sell fuel efficient cars like the Focus or Fiesta.

Anyone who has an order in for a Maverick 2022 Hybrid should thank Ford for the price subsidy. With the cost of gasoline today Ford may realize that they don’t need to underprice the MY23 Maverick Hybrid. In fact it would make sense if the Hybrid was a premium price to the EcoBoost Engine in 2023.

So I am looking on the bright side. Thank you Ford for my 2022 Christmas present.

I have said this all along. It is the only reason the Maverick exists at all.

 

[Decayed]

CAFE is very likely the reason for the hybrid's existence. Ford seems to have planned the production run to be no more than 40% of the total number of mavericks for this reason. They could sell all they could make and they know it.

 

[FakeCowboy]

I'm going to disagree with this, the only parts the ecoboost have over the hybrid powertrain are the super cheap Borg Warner turbo (these things are hot trash) and the relatively cheap, part plastic front mount intercooler. The hybrid's battery and electric motor to include all the copper in it I would estimate are much more costly for Ford not to mention all the control modules that go along with the hybrid powertrain. To me it seems insane that the hybrid is priced lower than the ecoboost but clearly OP is onto something. I suspect there's a really good chance we'll see a significant price increase for the hybrid Maverick for MY23.

 

[theway-yay-ting]

On October 21, 2021, I ordered a Hybrid Maverick XLT Lux Pkg, AutoPilot 360, SIBL, which by all standards I considered to be a fantastic value proposition; many of you have done similarly.

Wow! With the exception of the sliding rear window, I ordered the exact same package (even color!) on October 26, 2021.

So I guess if you get yours for Christmas, I get mine on New Year's Eve?

 

[Hoagus]

Ford is subsidizing the Maverick Hybrid to meet government regulations and it needs to have this vehicle to sell in high volumes since they no longer sell fuel efficient cars like the Focus or Fiesta.

This the first time I’ve seen it stated that the hybrid is being subsidized.

Do you have a source for this?

 

[Peps]

I initially thought about CAFE standards but then consider how the CAFE is only in selected states (east/west coasts). there are tons of trucks going to oil-loving states in the south....
I recall GM selling the bold or Hyunday the Kona EV only to "CAFE " states..
they just had the hybrid from the escape and pass it to the little truck..

 

[Thrillhouse]

It was my understanding that sales volume didn't matter in CAFE standards? What mattered is the MPG of the fleet? It's like GM shoving a 4 cylinder in a Silverado nobody wants. They offer it and it improves the fleet's MPG.

 

[Hoagus]

Ford is off-setting the expense of the hybrid using a $1,000+ markup on the ECOboost., while balancing CAFE.

Do you have a source for this information?

 

[X17Ridgeline]

This the first time I’ve seen it stated that the hybrid is being subsidized.

Do you have a source for this?

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