""Ford no longer plans to produce select larger electric vehicles where the business case has eroded due to lower-than-expected demand, high costs and regulatory changes," Ford said inthe release. The company also plans tostop the production of electric commercial vans it had planned to release in the US and Europe. Instead, it's boosting its hybrid car pipeline. "By 2030, about 50% of Ford's global volume will be hybrids, extended-range EVs and electric vehicles, versus 17% today," the company added."
"Ford CEO Jim Farley said in a Monday Bloomberg interview: "It was really the customer changing their decision." Farley said that in November, Ford saw a 30% increase in its hybrid sales. On the flipside, it saw a slump in its more expensive EVs, while its more affordable EVs performed better. "The EV market in the US went from 12% of the industry to only five, and that really, in the end, was the big decider for us," he said to Bloomberg."
Ford is deprioritizing fully electric large vehicles and cancelling planned electric commercial vans for the US and Europe because of lower-than-expected demand, high costs, and regulatory changes. The company is shifting focus toward hybrids and plans a high-volume family of smaller, efficient, affordable EVs starting with a midsize pickup truck in 2027. Hybrid sales rose roughly 30% in November while demand declined for pricier EVs and improved for affordable EVs. Ford expects the production-plan changes to cost about $19.5 billion, with most of the financial hit booked this quarter. Ford's stock price remained largely flat.
Read at Business Insider
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