In response to a global slowdown in electric vehicle (EV) demand, Ford Motor announced on Thursday that it would postpone the planned launches of three-row EVs in Canada and its next-generation electric pickup truck manufactured in Tennessee. The decision reflects a strategic pivot towards hybrid electric vehicles (HEVs) as the company aims to navigate the evolving landscape of sustainable transportation.
Ford CEO, Jim Farley, emphasized the company’s commitment to building a profitable EV business while also ensuring prudent capital allocation. “We are committed to scaling a profitable EV business, using capital wisely and bringing to market the right gas, hybrid and fully electric vehicles at the right time,” Farley stated.
Despite Ford’s significant losses in its EV sector, with a reported $4.7 billion shortfall in 2023 and a projected $5 to $5.5 billion loss for the current year, the company remains resolute in its pursuit of sustainable mobility solutions. In February, Ford signaled its intention to launch the next generation of EVs exclusively when profitability could be assured.
The decision to delay the launch of the new large EV SUV in Oakville, Ontario, until 2027 and postpone deliveries of the EV truck from the Tennessee plant to 2026 underscores Ford’s strategic reassessment of the EV market dynamics. These adjustments are aimed at aligning with emerging battery technology and market demand for three-row EVs.
Ford also revealed plans to expand its hybrid electric vehicle offerings, with a target to provide hybrid powertrains across its entire gas-powered vehicle lineup by 2030. This shift reflects a broader industry trend towards hybridization as automakers adapt to evolving consumer preferences and regulatory landscapes.
John Lawler, Ford’s Chief Financial Officer, indicated last year that the company would delay some of its planned investments in EV and battery production capacity. This decision reflects a pragmatic approach to capital deployment amidst changing market conditions.
The postponement of EV production initiatives has raised concerns among stakeholders, including the Unifor union in Canada, which represents Ford workers. Unifor President Lana Payne expressed disappointment over the impact on workers and urged Ford to honor its commitments to investment and job creation.
Ford’s decision comes in the wake of similar announcements from competitors such as General Motors (GM), which delayed the production of electric pickup trucks at its Michigan plant. These developments underscore the challenges and uncertainties facing the automotive industry as it navigates the transition to electrification amidst shifting market dynamics and regulatory frameworks.
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