As part of its planned $50 billion dollar investment in EVs between now and 2026, Ford announced last year that it had set a goal of ramping up its annual production of all-electric vehicles to 600k units by 2024, and two million across the globe each year by 2026. Following a strong start in which demand for its EVs outweighed supply, those goals appeared to be realistic – save for various supply chain concerns – but falling demand through the first half of 2023 recently prompted the automaker to announce that it was pushing back its 600k unit target to later next year. Now, it seems as if the automaker’s goal of building two million EVs a year by 2026 will be flexible, too.
“In line with that, we are now targeting to reach 600,000 annual production units of EVs by next year, and we maintain flexibility on where we reach, when we reach two million total EV global capacity because we are balancing growth, profitability, and returns,” Ford CEO Jim Farley said during the automaker’s Q2 earnings call recently.
This news doesn’t come as a huge surprise given this lull in demand for EVs in general, coupled with the fact that Ford opted to delay its next production ramp up. Even with supply chain constraints easing and raw materials prices falling – which have helped The Blue Oval significantly ramp up production of the Ford Mustang Mach-E, Ford F-150 Lightning, and Ford E-Transit, as well as cut prices of the former two models – the automaker has remained adamant that its EVs won’t be profitable until the second-generation models arrive beginning in 2025, too.
In the meantime, The Blue Oval expects that its Ford Blue ICE division and Ford Pro commercial business will continue to compensate for losses in the Model e EV side of things, particularly given its new focus on hybrids. Farley expects hybrid sales to continue to grow moving forward, and the automaker will keep rolling out new models – such as another Ford F-150 hybrid – though plug-ins don’t seem likely to factor into this expansion.