Ford scales back EV ambitions at a cost of €1.7bn
And American The An Cancelled Plans Fully Pany A Pickup Also Suv Electric Delayed Plans Electric For For
Car manufacturer Ford is recalibrating its electrification strategy yet again, cancelling plans for a fully electric sport utility vehicle in a shift that may cost the carmaker around $1.9bn (€1.7bn).
In addition to scrapping an all-electric three-row SUV that had already been delayed, Ford will further postpone a next-generation electric pickup and reduce spending on electric cars to 30% of its annual capital expenditures, from about 40% previously.
The automaker also announced that it’s shaking up battery-sourcing plans, citing the need to better compete with lower-cost Chinese competitors.
The actions amount to further pullback by CEO Jim Farley, who initially accelerated Ford’s shift to electric cars when he took over the top job almost four years ago.
The automaker incurred significant costs spooling up production as industry sales growth began to taper off, leading Ford to forecast that its electric car unit will lose as much as $5.5bn this year.
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Mr Farley is now betting Ford can deliver electric cars that are priced on par with traditional vehicles, including a battery-powered midsize pickup truck due to debut in 2027, and turn a profit on these models within a year after they launch.