Even for early adopters and those looking to reduce CO22 Emissions fall when some EVs achieve a 50 percent first-year depreciation.
Automakers are also feeling the pressure. Ford said in a press release that it will expand customer choice by “pacing our pure electric vehicle rollout to deliver a capital-efficient, profitable electric vehicle business.” It also noted that Chinese automakers have “advanced cost structures, including vertical integration, low-cost engineering, multi-energy advanced battery technology and digital experiences.”
By ceasing production of a three-row SUV and delaying the launch of a next-generation pickup truck, Ford is hoping to stem losses from its previously ambitious EV plans, even going so far as to say future vehicles in Europe would pave the way for an “all-electric future.”
“It’s about understanding our customers and how this changes over time,” Lawler said at a press conference this morning. “It’s about providing our customers with options that meet their operating cycles and their needs, and that means offering them a choice between fully battery electric vehicles and hybrid technology.”
Ford must be profitable in the future.
Lawler said fate would determine whether Ford would launch an EV unless it could make a profit within the next 12 months.
“We will launch multiple electric vehicles in Europe this year,” Ford said in a statement. By that, he was referring to the EU-only Ford Explorer EV and Capri, which are built on the same platform borrowed from rival Volkswagen’s ID.4. “We will align our North American vehicle roadmap to offer a range of electrified options, including lower prices and longer ranges, designed to speed customer adoption.”
Ford’s statement added that “a multitude of new electric vehicle options coming to market over the next 12 months and increasing compliance requirements” are creating pricing pressures. “These trends underscore the need for a globally competitive cost structure, while being selective in customer and product segments to ensure profitable growth and capital efficiency,” the statement explained.
As part of its cost-cutting measures, Ford is delaying the launch of its T3 electric truck, a more advanced successor to the F-150 Lightning, until late 2027. Production of the truck had been scheduled to begin next year. The truck will be assembled at the Tennessee Electric Vehicle Center in the Blue Oval City. Ford is also planning to introduce a new all-electric commercial van, which is scheduled to start production in Ohio in 2026.
Lawler said Ford has “multiple hybrid technologies in development” and is working on other powertrain options. “We will continue to offer gasoline and diesel vehicles because the demand is there and will continue to do so,” he acknowledged.
“Our focus is to reshape Ford into a high-growth, high-margin, capital-rich, efficient and enduring company,” Lawler said.
EVs need to be profitable, he stressed: “If they’re not, then we’ll pivot, we’ll adjust and we’ll make tough decisions based on where our customers are in the marketplace. And that’s what we’ve done.”
Ford isn’t the only automaker shifting gears: General Motors and Honda last year abandoned plans to jointly develop low-cost electric vehicles, with GM prioritizing hybrids, and Volkswagen of America recently said a “balanced approach is the best way to go.”
Correction: This story has been changed to reflect that Ford’s EV sales increased in the first quarter of 2024, that production of the T3 truck was scheduled to begin in 2025, and that Ford’s previously announced plans for an all-electric future were related to the EU.
