Ford has announced a shift in focus after investing heavily in new plant and equipment for their electric models, the F-150 Lightning and electric Mustang Mach E. The company will now concentrate on developing hybrid options for their entire model lineup. This decision aligns Ford with Toyota’s strategy of prioritizing hybrid vehicles, a move that has drawn criticism from some environmentalists and policymakers who prefer pure Electric vehicles.
Ford CEO Jim Farley stated, “As the No. 2 EV brand in the US for the past two years, we are committed to scaling a profitable EV business, using capital wisely and bringing to market the right gas, hybrid and fully electric vehicles at the right time.”
The importance of timing in launching new models is crucial for carmakers. The rush by governments to promote EVs with substantial subsidies may have outpaced consumer demand. Ford, along with GM, made significant investments in EVs in 2021, but faced financial challenges. Despite a $4.3 billion profit in 2023 from their traditional vehicles, Ford’s Model e EV division suffered a $4.7 billion loss. The company’s recent strategic shift reflects a response to investor concerns about sustaining losses in a market where buyers are hesitant to invest in costly EVs.
With this new direction, the focus is now on Mary Barra, CEO of GM, to see how long investors will support the EV initiatives pushed by the Biden administration.
Keep an eye on this. We’ve seen the Japanese autos struggling in China and now @VW.
There are openings for VW in US EV market, particularly with more ID.4, ID. Buzz and the @Porsche Macan.
A reminder that the EV transition is a global story: https://t.co/eE6dvmHljO
— Corey Cantor🌕 (@CoreyBCantor) March 13, 2024