Ford, which was once pushing for EV production to get ahead of other automakers, is once again slowing down its investment in electric technology and new battery-powered vehicles. Previously, the company announced a big pickup truck and a full-electric three-row electric Sport Utility Vehicle or SUV for its future all-electric lineup. However, the automakers announced on Wednesday that they will extend the timeline of its new big electric truck by 18 months to 2027. Moreover, they outright scrapped their idea for a fully electric three-row electric SUV.
The company is also reducing its investments in technology, citing billions of dollars in losses in the segment. However, it announced a new electric delivery van for 2026 and a mid-sized pickup truck for 2027. Ford’s Chief Financial Officer, John Lawler, said in a conference call, “The competitive nature of the market is changing globally. That means these vehicles need to be profitable, and if not, we will pivot and adjust and make those tough decisions.” He further added that electric investment will now represent 30% of the company’s capital budget, down from 40%.
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One of the top reasons for this is the reduced rate of growth in electric vehicle sales, which prompts Tesla and other EV makers to reduce the price of their vehicles, creating a more competitive environment. Nearly 600,000 electric cars were sold in the US in the first six months of the year, a 7% increase, which is nothing compared to a 46% increase in 2023. Last month, Ford reported that its electric division saw a whopping $2.5 billion in losses in the year’s first half.
Just a few years ago, Ford said that it hoped to make about 2 million EVs every year by 2026, a plan they forfeited last year. As of now, the company sells 3 all-electric models: an F-150 Lightning pickup truck, a Mustang Mack E SUV, and an E-Transit van. Ford’s future EV plans are still uncertain, and the company needs to go back to the drawing board to streamline its operations.
