The US car manufacturer Ford is fundamentally changing its model plans due to high losses in the highly competitive market for electric cars. As the company announced on Wednesday, there will be no large electric SUV with three rows of seats – this will have a hybrid engine instead. The successor to the Lightning F-150 heavy-duty pickup truck is further delayed. Ford wants to focus on electric delivery vans from 2026 and two cheaper mid-size pickups from 2027.
“These electric vehicles will be more cost-effective,” said Ford CEO Jim Farley. Chief Financial Officer John Lawler said the timetable was changed due to pressure on prices and margins for electric cars. The goal is to make new models profitable within a year.
Because of the decision against the large SUV, which was to be built in Canada, a write-off of $400 million and additional costs of up to $1.5 billion, Ford nevertheless explained that the stock responded to the announcement with price gains before the start of trading.
What is needed now
The car manufacturer justified the redesign with competition from Chinese rivals who produce more cost-effectively. In addition, customers who are more price-conscious than the pioneers must now win over electric car buyers. Profitable growth requires a globally competitive cost structure and targeted offerings. Ford expects a loss of up to $5.5 billion (4.96 billion euros) on its electric vehicles this year alone.
The F-150 Lightning electric truck is further delayed until the second half of 2027; it was originally planned for 2025. But Ford is trying to use more cost-effective battery technology. When it comes to batteries, the car manufacturer is changing its plans due to the subsidies of the Inflation Reduction Act (IRA) in the United States of America: instead of the South Korean manufacturer LG Energy Solution in Poland, the batteries for the electric Mustang to manufacture. in the USA. “An affordable electric vehicle starts with an affordable battery,” Farley said.