Please ensure Javascript is enabled for purposes of website accessibility
Ford to Shift Electric Vehicle Strategy by Building New Lower-Cost Pickups and a Commercial Van
gvw_ap_news
By Associated Press
Published 8 months ago on
August 21, 2024

Ford shifts EV strategy, focusing on affordable pickups and a commercial van to boost profitability amid market changes. (AP File)

Share

Getting your Trinity Audio player ready...

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 before taxes 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.

New Mid-Sized Pickup and Commercial Van in the Works

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 for big electric SUVs, 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%.

Adapting to Changing EV Market Dynamics

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.

Ford also said it will build more commercial and consumer vehicles off of new, more affordable EV underpinnings. More details will be released at an event in the first half of next year.

Slowing EV Sales Growth and Rising Hybrid Popularity

Electric vehicle sales in the U.S., Ford’s most profitable market, are still growing but have slowed as more practical consumers worry about range and the ability to recharge while traveling. Market leader Tesla Inc. has cut prices, forcing others to follow.

U.S. electric vehicle sales overall rose about 7% during the first half of the year to 599,134, Motorintelligence.com reported. EVs accounted for 7.6% of the U.S. new vehicle market, about the same as it was for all of last year. Lease deals, which include federal tax credits, helped to boost sales.

Sales of gas-electric hybrids skyrocketed 35.3% from January through June to 715,768, eclipsing electric vehicle sales.

That was part of the reason Ford changed strategy to go with hybrids on the big SUVs. Hybrids, the company said, have profitability that is similar to gas vehicles, which Ford will continue building.

Shares of Ford rose 2.1% in trading Wednesday.

RELATED TOPICS:

DON'T MISS

First California EV Mandates Hit Automakers This Year. Most Are Not Even Close

DON'T MISS

Bakersfield to Host Sanders and AOC in ‘Fighting Oligarchy’ Event

DON'T MISS

Jaguar and Land Rover Maker Pauses Shipments to US as It Develops Post-Tariff Plans

DON'T MISS

China Hit Brakes on TikTok Deal After Trump Announced Wide-Ranging Tariffs

DON'T MISS

Shohei Ohtani Throws Second Bullpen Since Resuming Mound Ramp Up

DON'T MISS

Visalia Traffic Stop Nets $30K in Xanax, Marijuana

DON'T MISS

Fresno Joins Global Protest Against Donald Trump and Elon Musk

DON'T MISS

2 US Border Inspectors Charged With Taking Bribes to Wave in People Without Documents

DON'T MISS

The Latest: Trump’s Tariffs Unleash Trade War and Calls for Negotiations

DON'T MISS

Phone Footage Appears to Contradict Israel’s Account in Troops’ Killing of 15 Palestinian Medics

DON'T MISS

Trump and Netanyahu to Discuss Gaza Crisis and Tariffs at Upcoming Meeting

UP NEXT

Jaguar and Land Rover Maker Pauses Shipments to US as It Develops Post-Tariff Plans

UP NEXT

China Hit Brakes on TikTok Deal After Trump Announced Wide-Ranging Tariffs

UP NEXT

Shohei Ohtani Throws Second Bullpen Since Resuming Mound Ramp Up

UP NEXT

Visalia Traffic Stop Nets $30K in Xanax, Marijuana

UP NEXT

Fresno Joins Global Protest Against Donald Trump and Elon Musk

UP NEXT

2 US Border Inspectors Charged With Taking Bribes to Wave in People Without Documents

UP NEXT

The Latest: Trump’s Tariffs Unleash Trade War and Calls for Negotiations

UP NEXT

Phone Footage Appears to Contradict Israel’s Account in Troops’ Killing of 15 Palestinian Medics

UP NEXT

Trump and Netanyahu to Discuss Gaza Crisis and Tariffs at Upcoming Meeting

UP NEXT

Trump Doubles Down That Tariffs Will Pay Off for Americans

Shohei Ohtani Throws Second Bullpen Since Resuming Mound Ramp Up

6 hours ago

Visalia Traffic Stop Nets $30K in Xanax, Marijuana

7 hours ago

Fresno Joins Global Protest Against Donald Trump and Elon Musk

7 hours ago

2 US Border Inspectors Charged With Taking Bribes to Wave in People Without Documents

9 hours ago

The Latest: Trump’s Tariffs Unleash Trade War and Calls for Negotiations

10 hours ago

Phone Footage Appears to Contradict Israel’s Account in Troops’ Killing of 15 Palestinian Medics

10 hours ago

Trump and Netanyahu to Discuss Gaza Crisis and Tariffs at Upcoming Meeting

10 hours ago

Trump Doubles Down That Tariffs Will Pay Off for Americans

11 hours ago

Senate GOP Approves Trump’s Tax Breaks and Spending Cuts After Late-Night Session

11 hours ago

How Schools Can Help Students Facing Homelessness Get to Class

12 hours ago

Bakersfield to Host Sanders and AOC in ‘Fighting Oligarchy’ Event

Senator Bernie Sanders and Representative Alexandria Ocasio-Cortez are set to address supporters in Bakersfield, California, on Tuesday, Apr...

5 hours ago

5 hours ago

Bakersfield to Host Sanders and AOC in ‘Fighting Oligarchy’ Event

6 hours ago

Jaguar and Land Rover Maker Pauses Shipments to US as It Develops Post-Tariff Plans

6 hours ago

China Hit Brakes on TikTok Deal After Trump Announced Wide-Ranging Tariffs

6 hours ago

Shohei Ohtani Throws Second Bullpen Since Resuming Mound Ramp Up

A Visalia traffic stop on Friday, April 4, 2025, for tinted windows led to the arrest of a 22-year-old man after police found $30,000 worth of Xanax pills and a pound of marijuana in his vehicle. (Visalia PD)
7 hours ago

Visalia Traffic Stop Nets $30K in Xanax, Marijuana

7 hours ago

Fresno Joins Global Protest Against Donald Trump and Elon Musk

9 hours ago

2 US Border Inspectors Charged With Taking Bribes to Wave in People Without Documents

10 hours ago

The Latest: Trump’s Tariffs Unleash Trade War and Calls for Negotiations

Help continue the work that gets you the news that matters most.

Search

Send this to a friend