DETROIT, May 30 (Reuters) - Ford CEO Jim Farley wants

the industry to stop viewing hybrid vehicles as only an interim

solution to be used until drivers are comfortable going fully

electric.

"We should stop talking about it as transitional

technology," Farley said of hybrids at a Bernstein analyst

conference on Thursday.

Plug-in hybrids, which include a small battery that can be

used for shorter distances, may not be relevant in a few years,

Farley said. However, extended-range hybrids are an important

technology for the industry's future, he said.

Hybrid vehicles, which bridge the divide between gas-powered

vehicles and EVs, have experienced a surge in demand over the

past year, prompting automakers to scale back on their drive to

go electric.

Ford is aiming to quadruple hybrid sales over the next

several years, executives have said. It has pulled back on some

of its EV investments and pushed back production of EVs in

Canada and the U.S.

Separately, the Ford chief said on Thursday that EVs should

not be subsidized, and that automakers should be pushing to

profitably produce battery-powered models quickly.

"We believe that we have to get to that fitness level as

soon as possible," Farley said.

The Dearborn, Michigan company split its electric and

software division from its gas-engine operations in 2022, a move

that executives said would improve efficiency in both segments.

The automaker separately reports results for the wings of

its business following the restructuring.

Ford has forecast a loss of $5 billion to $5.5 billion in

its EV business this year after reporting a $4.7 billion loss in

2023.

Farley and other automotive executives have said software

and subscription services will be key profit drivers in the

future.

The Ford boss views autonomous driving technology as one of

the largest growth opportunities for the automaker.

Chinese competitors have been superior in their approach to

developing software and services that attract customers, Farley

said.

"The China consumer experience digitally is far beyond the

West," he said.

"You have to have great cost fitness and quality fitness to

even have the right to compete. And that's being defined not

here in the U.S. It's defined by China," he added.

With such fierce competition overseas, Farley does not

believe all car makers will survive. Pressure will be the

greatest on the all-EV brands that do not have gas-engine

offerings to buoy profits, he said.

(Reporting by Nora Eckert in Detroit, additional reporting by

Nathan Gomes in Bengaluru; Editing by Sriraj Kalluvila)