Ford Pulls Back On EV Spending
Ford signals a reduction on electric vehicle spending, dropping plans for a EV SUV and postponing launch of EV pickup
One of the world’s largest car manufacturers has signalled another step back from the electric vehicle (EV) sector, by reducing again its spending on the technology.
Ford announced a series of developments in its electric vehicle strategy on Wednesday, which it said “broadens electrification choices for customers and adjusts its rollout of pure electric vehicles to deliver a capital-efficient, profitable electric vehicle business, while continuing to significantly reduce carbon emissions over time.”
Ford has heavily invested many billions of dollars in electric cars and EV production facilities for the best part of a decade now.
EV changes
But the EV market has changed rapidly in the past year, with slowing demand causing well known EV brands including Tesla to carry out price cuts multiple times.
These price cuts comes amid certain manufacturers taking large losses on every EV sold.
Last year for example it was reported that Rivian was losing more than $30,000 on every electric truck it sells.
Ford meanwhile reportedly loses $50,000 for every EV it sells.
Into this comes Ford’s announcement on Wednesday that it is dropping plans for EV SUV and postponing the launch of EV pickup.
In its fully electric portfolio, Ford said it will prioritise the introduction of a new digitally advanced commercial van in 2026, followed by two new advanced pickup trucks in 2027 and other future affordable vehicles.
Ford also realigned its US battery sourcing plan to reduce costs, maximise capacity utilisation, and support current and future electric vehicle production. It will move some battery production from Poland to the US so it will qualify for the Advanced Manufacturing Tax Credit.
Ford also said it now plans to leverage hybrid technologies for its next three-row SUVs.
As a result of this decision, it will “take a special non-cash charge of about $400 million for the write-down of certain product-specific manufacturing assets for the previously planned all-electric three-row SUVs, which Ford will no longer produce.”
EV spending reduction
“We are committed to innovating in America, creating jobs and delivering incredible new electric and hybrid vehicles that make a real difference in CO2 reduction,” said Ford President and CEO Jim Farley. “We learned a lot as the No. 2 US electric vehicle brand about what customers want and value, and what it takes to match the best in the world with cost-efficient design, and we have built a plan that gives our customers maximum choice and plays to our strengths.”
Ford also said it “is retiming the launch” of its groundbreaking electric truck code-named “Project T3” to the second half of 2027.
It comes after Ford began selling the best-selling electric truck in the US, the F-150 Lightning, back in 2022.
Ford also revealed these changes would see it reduce the share of annual capital expenditures dedicated to “pure” electric vehicles from 40 to 30 percent.
