Ford Motor, which had once hoped to race ahead of other established automakers in electric vehicles, is again slowing the pace of its investments and new battery-powered models.
The automaker said on Wednesday that it would delay the introduction of a new large electric pickup truck by about 18 months, to 2027, and scrap a three-row electric sport utility vehicle.
The company is also reducing the amount of money it plans to spend on electric vehicles in an effort to stem multibillion-dollar losses on the technology, while adding plans to introduce a new electric delivery van in 2026.
A new medium-size electric pickup is expected in 2027 as well, the company said.
“The competitive nature of the market is changing globally,” Ford’s chief financial officer, John Lawler, said in a conference call.
“This is certainly not great news in terms of Ford’s progress on E.V.s,” said Sam Abuelsamid, a principal research analyst at Guidehouse Insights, a research firm.
“Clearly they have not yet come to grips with cost-reduced E.V.s and getting more affordable products on the market.” Thank you for your patience while we verify access.
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Ford Motor has once again slowed down the rate of its investments and new battery-powered models. Prior to this, the company had hoped to outpace other well-established automakers in the electric vehicle race.
The carmaker announced on Wednesday that it will forgo a three-row electric sport utility vehicle and postpone the release of a new large electric pickup truck until 2027, or around 18 months.
With plans to introduce a new electric delivery van in 2026, the company is also cutting back on its planned spending on electric vehicles in an attempt to stem multibillion-dollar losses on the technology. According to the company, a brand-new medium-sized electric pickup is anticipated in 2027.
Ford’s CFO, John Lawler, stated during a conference call that “the competitive nature of the market is changing globally.”. This means that if these cars aren’t profitable, we’ll have to change course and make those difficult choices. “.
Alright, Mr. According to Lawler, the company will now only invest roughly 30% of its capital budget—down from 40%—in electric vehicle purchases. For the purpose of accounting for the cost of the manufacturing equipment it bought to produce the canceled electric S.U, the company will deduct $400 million. V. as well as potential project-related additional costs of up to $1.05 billion.
Regarding Ford’s progress on E, this is undoubtedly not good news. VII. Principal research analyst Sam Abuelsamid of the research firm Guidehouse Insights stated as much. It’s obvious that they are still adjusting to lower E costs. VII. and putting more reasonably priced goods on the market. “.
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