Posted on 10/29/2023 11:03:18 AM PDT by Libloather
Ford has said it will postpone $12billion of investment into EVs because its current generation of electric cars is facing a 'challenging market'.
The new plan will see construction pause on some of the company's EV factories, including a battery plant in Kentucky, its executives noted during its third quarter earnings call on Thursday.
Ford's EV unit, called Ford Model e, lost $1.3 billion on an operating basis in the quarter - roughly double its loss in the same period last year. Shares of the company were down almost 10 percent in the hours after markets opened on Friday.
Its decision comes amid similar moves by other auto makers to pare back spending on electric vehicle projects.
This week Honda and GM said their $5billion partnership to build an affordable EV was scrapped. GM also said it would push back the manufacture of its Chevy Equinox EV, Chevy Silverado EV and GMC Sierra Denali EV.
John Lawler, chief financial advisor (CFO) of Ford, said that the company was not withdrawing altogether from electric investments, but delaying them.
'We are being judicious about our production and adjusting future capacity to better match market demand,' said Lawler during the call. 'It's a more challenging market.'
'We have taken out some Mustang Mach-E production and we are also slowing down several investments including making a decision with SK On to delay the second Blue Oval SK JV battery plant in Kentucky,' he added.
Ford has embarked on a joint-venture with Korean company SK On to open two side-by-side electric battery plants in Hardin County, Kentucky. Each of the two plants is expected to hire around 2,500 people.
The first plant is on schedule to start production in 2025. The second plant, which was due to go live in 2026, is the facility affected...
(Excerpt) Read more at dailymail.co.uk ...
Looks like a Gremlin that my cousin and her husband drove....
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