Posted on 08/26/2024 6:06:18 PM PDT by Red Badger
1st Gear:
Ford’s New EV Plan Means More Hybrids
Last week, we reported that Ford was canceling its plans for a three-row electric crossover as part of an adjustment to its electric strategy because of cooling demand for EVs. Now we are getting a better look at just how much that strategy is changing and what it’ll end up costing The Blue Oval. Chiefly, Ford is expected to take on $1.9 billion in related charges and write-downs.
The cancelation of this three-row EV comes after Ford said in the Spring that it would be delaying plans for the model by two years to 2027. It also comes during mounting pressure to restore aggressive discounts to get their current EVs off dealer lots.
All of this means more hybrids are coming to Ford’s lineup. From the Wall Street Journal:
Ford instead will offer hybrid gas-electric versions of future large, three-row SUVs, a popular vehicle category that includes the brand’s Explorer and Expedition nameplates.
The company’s moves are the latest example of automakers unwinding EV-investment plans they made years ago, when it looked like there was big untapped consumer demand for battery-powered models. There has been more hesitancy among car shoppers than auto executives initially expected, with surveys showing concerns about high prices and finding places to charge.
[...]
Ford also pushed back the launch of a new electric pickup truck by one year, until 2027, the second time it has pushed back the timeline. In addition, Ford said it would trim its capital spending on fully electric vehicles to about 30% of its budget, from 40%.
“Based on where the market is and where the customer is, we will pivot and adjust and make those tough decisions,” Ford Chief Financial Officer John Lawler said.
Ford said its EV business is on track to lose an eye-watering $5 billion this year alone. In the three-month period ending in June, the automaker lost about $44,000 on every electric vehicle it sold. That is not sustainable.
The automaker said it would take a special, non-cash charge of $400 million to write down expenses related to the cancelation of the electric three-row. The move may result in additional expenses of $1.5 billion. It would be reflected as special items in future quarters.
Executives have said the company is trying to reduce the losses on its current EV lineup while making sure future offerings turn a profit.
Carmakers are trying to strike a tricky balance on electric vehicles. Tougher tailpipe-emissions rules, along with the rapid rise of Chinese EV makers, are pressuring them to invest in the technology. But consumer interest in EVs has waned after a burst of enthusiasm.
For example, while Ford is recalibrating its plans to include more hybrids, it also is moving ahead with the rollout of several full EVs. It will start making an electric commercial van in 2026 and two new pickup trucks a year later.
One of the trucks will be a midsize pickup, built using a new, lower-cost EV system that has been under development for nearly two years by a team of about 100 Ford engineers in Irvine, Calif. Led by former Tesla executive Alan Clarke, that project is designed to produce several electric models that Ford says will be profitable and allow the company to compete with Chinese EV makers.
“We believe that the fitness of the Chinese in EVs will eventually wash over our entire industry in all regions,” Farley told analysts last month.
Ford obviously isn’t alone in this move to pull back on EV plans because of lower-than-expected demand. General Motors has acted similarly.
Sure, fully electric vehicle sales rose 6.8 percent through the first half of the year, WSJ reports, but that represents a sharp deceleration from nearly 50 percent growth in 2023. At the same time, sales of hybrids have risen sharply over the past year.
I don’t know, man. If I was Ford and I was losing $44,000 per vehicle, I’d probably try something new as well.
Harris said they can make it up on volume.
Good.
Companies that let themselves be pushed around by moroons in the government SHOULD take it in the shorts.
If we just outright BANNED all Public Employee’s from using anything other than EV for ALL TRAVEL to and from their respective work place, they could sell them.
Stop subsidies and watch the demand curve..
Stop subsidies and watch the demand curve..
It's kind of hard to fight facsim.
The Government colluded with investment banks, institutional share holders, and private equity firms to force their geopolitical agenda via "stakeholder capitalism".
Em. I believe they’re subsidized by us who end up taking it in the proverbial shorts.
Stop subsidies and watch the demand crash................
EV’s vs. Hybrids is like straight vs. Bi. Bi doubles your chances on a Saturday night.
Unfortunately, America’s largest companies are now very similar to Russia’s and China’s - they are national political tools, who will be forced (and rewarded) to do business in a way that matches the political and social-engineering goals of the centralized state.
Yep.
If you play footsie with the Government, any government, you eventually get kicked in the knee...............
I bet she thinks the volume knob goes up to 11.
When the democrat dream comes true and government spending exceeds personal spending, then the entire economy will be doing great, not just the public sector.
It can't be called a sale when, in effect, it's been given away for a loss. That's called price dumping and it's illegal.
While Tesla actually makes a profit on theirs.
TESLA IS NON-UNION, SO THAT COULD BE THE REASON............
Hybrid is a better choice anyway.
Though I chose internal combustion, the most problem-free of the three.
From the article, a summary:
pivoting
recalibrating
pulling back
decelerating
Disclaimer: Opinions posted on Free Republic are those of the individual posters and do not necessarily represent the opinion of Free Republic or its management. All materials posted herein are protected by copyright law and the exemption for fair use of copyrighted works.