Ford Motor Company is making a significant change in its approach to electric vehicles, opting for gas-electric hybrids instead of fully electric three-row SUVs. The decision is a response to the company’s current financial struggles in the EV market, where it is losing millions on its current offerings. By shifting its focus to more affordable and practical electric vehicles that can appeal to a broader range of customers, Ford hopes to increase sales and profitability.
The company is investing in the production of two new electric pickup trucks, which will have a longer range and be priced lower than current offerings. However, specifics on pricing and range were not disclosed. Additionally, Ford is delaying the production of its next-generation full-size electric pickup truck by 18 months, until 2027, which will result in a write-down of $400 million in current assets and additional expenses of up to $1.5 billion.
Ford’s decision to pivot its electric vehicle strategy comes as the company faces growing competition in the market, with major players like Tesla, General Motors, and Rivian investing heavily in electric vehicle technology and production. However, Ford is confident that its new approach will allow it to carve out a niche for itself in the competitive EV market and establish a solid foundation for future growth.
Ford Shifts Gears to Affordable Electric Options Next Year (Image via Getty)
The company is also abandoning plans for a fully electric mid-size SUV, opting instead for a gas-electric hybrid version. Additionally, Ford’s commercial van will receive an electric makeover, aiming to offer a more affordable and efficient option for business customers. According to John Lawler, Ford’s chief financial officer, the company is committed to creating long-term value for its investors, and the decision to shift its electric vehicle strategy demonstrates this commitment.
Ford’s decision to focus on affordable electric vehicles is a strategic move to increase sales and profitability in a highly competitive market. By producing electric pickup trucks and commercial vans, Ford aims to appeal to a broader range of customers and establish itself as a major player in the electric vehicle market. The company’s shift in strategy is expected to have a significant impact on its financial performance in the coming years, and investors will be closely watching to see how the new approach plays out.
