TECH - Ford's Delay Of Its All-Electric SUV Is Not The Result Of Gone EV Euphoria But Part Of A Wise Strategy | Benzinga
Although Ford Motor (NYSE: F) will continue to invest in EVs, it announced it will be delaying the production of an all-electric SUV and pickup truck in order to introduce hybrids across its North American lineup by the end of the decade. Ford’s shift comes as the entire automotive industry is in the process of rethinking its EV plans in response to the demand slowdown.
The EV venture is costly.
In 2023, Ford’s EV business lost $4.7 billion. In the fourth quarter alone, making e-models created a loss of $1.57 billion. In February, Ford guided for 2024’s loss to be in the range between $5 billion and $5.5 billion. Last year, Ford already announced its plans to delay or cancel $12 billion in planned EV spending due to challenges.
Therefore, it should come as no surprise that Ford decided to postpone the production of its three-row SUV at a plant in Canada from the initially planned 2025 to 2027. Moreover, the gigantic Tennessee facility that belongs to the $11.4 billion investment announced back in 2021, also pushed back the production of ...