As demand for all-electric vehicles began to fall behind expected levels of growth a few months ago – even as sales continue to rise – Ford has dialed back its planned investments into electrification somewhat, trimmed projected output at its under-construction EV and EV battery plants, and delayed or outright canceled certain models. Yesterday, The Blue Oval revealed even more major news regarding its electrification plans, which also include an overall cut to its spending in that area as well.
John Lawler – Ford’s vice chair and chief financial officer – revealed that the company plans to shift its mix of annual capital expenditures dedicated to all-electric vehicles from the current rate of 40 percent to 30 percent as part of this shift. The move is being made as the automaker instead plans to focus on ramping up its hybrid offerings to meet growing demand in that part of the business, too.
“We’re committed to creating long-term value by building a competitive and profitable business,” Lawler said. Â “With pricing and margin compression, we’ve made the decision to adjust our product and technology roadmap and industrial footprint to meet our goal of reaching positive EBIT within the first 12 months of launch for all new models.”
As Ford Authority previously reported, these moves include canceling two planned three-row all-electric SUVs (believed to be the long-rumored Ford Explorer and Lincoln Aviator EVs for North America) and instead launching hybrid alternatives, as well as pushing back the production start date of the next-generation Ford F-150 EV to 2027 at the Tennessee Electric Vehicle Center. However, Ford isn’t giving up on EVs by any measure, and plans to launch a mid-size EV pickup riding on its new low-cost platform (which could be called the Ford Ranger EV) in 2027, and it’s also shifting some Ford Mustang Mach-E battery production from Poland to Michigan to enable the crossover to qualify for the federal clean energy tax credit.
We’ll have more on Ford’s electrification plans soon, so be sure and subscribe to Ford Authority for 24/7 Ford news coverage.
Comments
I don’t think any of this comes as much of a surprise given that some manufacturers jumped too far ahead in this powertrain transition. Other manufacturers either through better data about their consumer audiences and/or a willingness not full on embrace the move to all electric for appearances, focused on hybrids largely, and EV’s less so.
I said it before (but I won’t say it again) Mr. Akio Toyoda of Toyota was absolutely correct when he held his ground and stated that the automotive lemmings were all headed much too quickly in the EV direction. The world needs hybrids first with a smattering of EVs. But he got pushed out of his CEO role for being so boldly correct while the CEOs that went with the herd lost billions and billions and billions of dollars and kept their jobs. Not fair at all.
If you recall, I predicted this 2 years ago.
The surrender flag is up and Ford is getting ready for then end. Tesla is outselling the Lightning. EV’s are over 50% in China and growing. The Y, most American made EV, is making money and crushing the Mach E. You can’t outsource and make money in the EV space. You can’t be a hollow company made up of salesmen and make EV’s at a profit. The Ford of old is gone and the men who made it as well.
Make $30K EVs and see how well they sell. What are they waiting for?
Ford needs to sever EVs from the dealership model. EVs should be marketed by direct sales thru company-owned outlets with service provided be factory certified contractors.