Ford to delay all-electric SUV to focus on hybrid vehicles

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107193796 1676318777494 IMG 7455

Ford Motor is delaying production of a new all-electric large SUV and pickup truck to offer hybrid options across its entire North American lineup by 2030. The Detroit automaker announced it will continue to invest in EVs but is postponing production of the three-row SUV and pickup truck to allow for the market to mature. This shift in EV plans is in response to slower adoption rates and high production costs in the automotive industry. Ford last year announced delays in planned spending on new EVs due to changing market conditions. Ford CEO Jim Farley stated the company is committed to scaling a profitable EV business by bringing the right gas, hybrid, and fully electric vehicles to market at the right time. The delays will enable Ford to take advantage of emerging battery technology and provide customers with increased durability and better value. Ford will focus its EV efforts on new plants like the “BlueOval City” campus in Tennessee rather than transitioning current facilities to all-electric models. The automaker will continue construction of battery plants in Michigan, Tennessee, and Kentucky. In the first quarter of 2024, Ford’s electric vehicle sales increased by 86% from the previous year. Hybrid sales rose by 42%, while traditional internal combustion engine vehicle sales were up by 2.6%. Ford’s “Model e” electric vehicle business reported losses in 2023, and the company expects further losses in 2024.

Ford Motor Company CEO Jim Farley announced the construction of a new $3.5 billion electric vehicle battery plant in suburban Detroit, emphasizing the importance of scaling a profitable EV business while also ensuring the right gas, hybrid, and fully electric vehicles are brought to market at the right time. The automaker is delaying the production of a new all-electric large SUV and pickup truck to adjust to the slower adoption of EVs and high production costs, shifting to offer hybrid options across its entire North American lineup by 2030. The three-row SUV, part of a $1.3 billion investment to transition Ford’s Oakville Assembly Plant in Ontario into an EV hub, is being pushed back from 2025 to 2027, while the pickup truck’s launch has been delayed from late 2025 to 2026. Ford also plans to prioritize new EV plants like the “BlueOval City” campus in Tennessee rather than converting existing facilities to produce all-electric models. The Tennessee facility will now begin producing Ford’s next-generation all-electric truck, codenamed “T3,” in 2026 instead of 2025. Ford is continuing the construction of battery plants in Michigan, Tennessee, and Kentucky, and reported an 86% increase in electric vehicle sales in the first quarter of 2024 compared to the previous year, as well as a rise in hybrid and traditional vehicle sales. The company’s “Model e” electric vehicle business experienced losses of $4.7 billion in 2023, with an expected loss of between $5 billion and $5.5 billion in 2024. The delays in production and changes in strategy reflect Ford’s commitment to adapting to market conditions and ensuring the long-term success of its EV initiatives.

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