A visitor inspects a 2020 Ford Escape FWD Titan hybrid small SUV at the Canadian International Auto Show on February 18, 2020 in Toronto, Ontario, Canada.
Chris Helgren | Reuters
DETROIT – Ford engine is delaying production of a new all-electric large SUV and pickup trucks as the company plans to offer hybrid options across its North American lineup by 2030.
The Detroit automaker said Thursday it will continue to invest in electric vehicles, but is delaying production of the three-row SUV at a plant in Canada to 2027 from its original plan for 2025. The next-generation pickup, codenamed “T3,” will be released by late 2025 postponed to 2026.
The rebalancing of electric vehicle plans is the latest for Ford and the entire auto industry, as rollouts have been slower than many expected and production costs remain high.
Ford announced last year that it would delay or eliminate $12 billion in planned spending on new electric vehicles because of changing market conditions and difficulty building and selling the vehicles profitably.
The Ford brand ranked second behind Tesla in electric vehicle sales in the first quarter of this year, but the Detroit automaker as a company came in third overall. Both Tesla and Hyundaiincluding Kia and Genesis, surpassed Ford’s electric vehicle sales.
“As the second-largest EV brand in the U.S., we have been committed to growing a profitable EV business for two years by deploying capital wisely and bringing the right gasoline, hybrid and all-electric vehicles to market at the right time,” Ford said CEO Jim Farley said in a statement on Thursday.
The Ford brand ranked second in electric vehicle sales Tesla But the Detroit automaker ranked third as a company in electric vehicle sales in the first quarter or this year. Both Tesla and Hyundai, including the Kia and Genesis brands, surpassed Ford’s electric vehicle sales.
The three-row SUV was part of a roughly $1.3 billion investment to transform Ford’s Oakville assembly plant in Ontario, Canada, into a new electric vehicle hub. It would be the first time Ford has completely converted a North American plant that makes gas-powered vehicles into an electric vehicle manufacturing plant.
“The additional time will allow the consumer market for three-row electric vehicles to evolve and enable Ford to take advantage of new battery technology, with the aim of offering customers longer durability and better value for money “, the company said in a press release.
Ford said it will continue to focus its EV efforts on new plants like its own “BlueOval City” campus in Tennessee instead of converting the current facilities that produce motor-powered vehicles to all-electric models.
“Our groundbreaking next-generation electric vehicles will be new from the ground up and fully software-enabled, with ever-improving digital experiences and a variety of potential services,” Farley said.
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The automaker said the massive Tennessee plant, part of an $11.4 billion investment announced in 2021, will begin producing Ford’s next-generation all-electric truck in 2026 instead of 2025.
Ford said construction of battery plants will continue in Michigan, Tennessee and Kentucky.
In the first quarter of 2024, Ford’s electric vehicle sales rose 86% from subdued levels a year ago. The automaker’s hybrid sales rose 42% year over year, while sales of Ford’s traditional internal combustion engine vehicles rose 2.6%.
Ford’s Model e electric vehicle business lost $4.7 billion in 2023, including $1.57 billion in the fourth quarter. In February, the automaker said it expected the unit to lose between $5 billion and $5.5 billion in 2024.
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2024-04-04 23:16:42
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