Ford Motor Company has announced delays in the production of a new all-electric large SUV and pickup truck. The automaker is shifting its focus to offering hybrid options across its entire North American lineup by 2030. The three-row SUV production has been postponed to 2027 from its initial plan of 2025, and the next-generation pickup truck has been pushed back to 2026 from late 2025. These delays come as Ford re-evaluates its EV strategy in response to slower adoption rates and high production costs.
The automotive industry, as a whole, has faced challenges in the EV market, with Ford being no exception. Last year, the company announced a delay in planned spending of $12 billion on new EVs due to shifting market conditions and profitability challenges. While the Ford brand ranked second in EV sales behind Tesla, the company as a whole ranked third overall. Competitors like Tesla and Hyundai, including Kia and Genesis, outsold Ford in EVs during the first quarter of this year.
Despite the delays in production, Ford remains committed to investing in EV technology. The automaker is focusing on new plants like the “BlueOval City” campus in Tennessee rather than transitioning current facilities producing engine-powered vehicles to all-electric models. Ford CEO Jim Farley emphasized the company’s commitment to scaling a profitable EV business and bringing the right vehicles to market at the right time.
Ford’s Oakville Assembly Plant in Ontario, Canada, was set to be transitioned into a new electric vehicle hub with a significant investment. However, the three-row SUV production delay will allow Ford to take advantage of emerging battery technology and further develop the consumer market for EVs. The company also announced the construction of battery plants in Michigan, Tennessee, and Kentucky to support its EV production goals.
In the first quarter of 2024, Ford saw an 86% increase in electric vehicle sales compared to the previous year. Hybrid sales rose by 42% year over year, while sales of traditional internal combustion engine vehicles were up by 2.6%. Despite these improvements, Ford’s “Model e” electric vehicle business incurred a significant loss of $4.7 billion in 2023, with further losses expected in 2024.
Ford’s decision to delay the production of new all-electric vehicles reflects the company’s efforts to navigate the challenges of the EV market and prioritize profitability. By investing in emerging battery technology and focusing on new EV plants, Ford aims to strengthen its position in the electric vehicle sector. However, the road ahead may be challenging, as the company continues to face financial losses in its EV business.
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