DETROIT — Facing competition from automakers with lower costs, Ford Motor Co. is shifting its electric vehicle strategy and now will focus on making two new electric pickup trucks and a new commercial van. The company says all will cost less, have longer range and be profitable within a year of reaching showrooms.
Ford, which is losing millions on its current EVs, gave few details about the new products. But it said production of its next generation full-size electric pickup truck in Tennessee will be delayed 18 months, until 2027.
The company also says it won’t build fully electric three-row SUVs due to high battery costs, but instead will focus on making those vehicles as gas-electric hybrids.
The other new pickup will be mid-sized, based on new underpinnings developed by a small team in California. It also will go on sale in 2027. Production of the unspecified van will start at an assembly plant west of Cleveland in 2026.
The changes will force Ford to write down $400 million of its current assets, and it also expects to have additional expenses of up to $1.5 billion.
“We’re committed to creating long-term value by building a competitive and profitable business,” Chief Financial Officer John Lawler said in a statement.
The company also said it will cut capital spending on EVs. It now will spend 30% of its annual capital budget to develop them rather than the current 40%.
Ford, which has long been talking about making profitable EVs, lost $2.46 billion on them in the first half of the year, dragging down profits from its gas-powered and commercial units.
The company said in a prepared statement that the global EV market is changing rapidly, and it must evolve to compete with Chinese automakers that have lower production and engineering costs. At the same time, current buyers are more cost-conscious than early adopters, and automakers are introducing more EVs.
“These dynamics underscore the necessity of a globally competitive cost structure while being selective about customer and product segments to ensure profitable growth and capital efficiency,” the company said.
Shares of Ford rose 1.4% in trading before Wednesday’s opening bell.
Ford Motor Company recently announced its ambitious new electric vehicle strategy, which includes plans to introduce lower-cost electric pickups and commercial vans in the near future. This move is part of Ford’s larger commitment to electrifying its vehicle lineup and reducing its carbon footprint.
One of the key components of Ford’s new electric vehicle strategy is the development of electric pickups, which are expected to be more affordable than the company’s current electric offerings. This is a significant development, as electric pickups have traditionally been more expensive than their gasoline-powered counterparts. By offering lower-cost electric pickups, Ford aims to make electric vehicles more accessible to a wider range of consumers.
In addition to electric pickups, Ford also plans to introduce electric commercial vans as part of its new strategy. These vans are expected to be popular among businesses looking to reduce their carbon emissions and operating costs. Electric commercial vans offer a number of advantages over traditional gasoline-powered vans, including lower fuel costs, reduced maintenance expenses, and improved environmental performance.
Ford’s new electric vehicle strategy is part of the company’s broader efforts to transition to a more sustainable transportation model. By investing in electric vehicles, Ford is positioning itself as a leader in the rapidly growing electric vehicle market. The company has already made significant strides in this area, with the successful launch of the Mustang Mach-E electric SUV and the upcoming release of the all-electric F-150 Lightning pickup.
In addition to developing new electric vehicles, Ford is also investing in infrastructure to support the widespread adoption of electric vehicles. The company recently announced plans to invest $22 billion in electrification through 2025, including the development of a network of charging stations across North America. This investment will help address one of the key barriers to widespread electric vehicle adoption – the lack of charging infrastructure.
Overall, Ford’s new electric vehicle strategy represents a major step forward in the company’s efforts to reduce its environmental impact and meet the growing demand for electric vehicles. By introducing lower-cost electric pickups and commercial vans, Ford is making electric vehicles more accessible to consumers and businesses alike. With its significant investments in electrification and infrastructure, Ford is well-positioned to lead the transition to a more sustainable transportation future.
