Ford delays and scales back EV plans, switching up its long planned strategy

The Ford Motor Company recently revealed an unexpected shift in their EV strategy. This was followed by the Michigan car manufacturer by completely dropping their long planned large, 3-row, all-electric SUV and putting off their next electric pickup truck.

As the growth in demand for electric vehicles loses momentum, the company’s chief financial officer John Lawler states the company’s effort to respond to the compression of margins and pricing. A company representative further stated the advantages of the up-to-the-minute time table, asserting the implementation of advanced technologies in the battery and lowering the cost of the vehicles whilst also improving their range on one charge.

With the changes taking place, Ford claims to improve their financing related to pure EVs, reducing their share of capital expense by ten percent. An inclination towards hybrids and signs of weaker than expected consumer demand, Ford, along with several rival companies like GM, exerted that they were scaling back their EV ambitions. Although, the sales of electric vehicles in the US have picked up, their business has lost more than 2 billion dollars.

In an attempt to lower costs, the auto manufacturing giant has decided to relocate some battery production from Poland to the United States. This move will further help them gain access to government incentives from the Inflation Reduction Act. Ford said that their lithium iron phosphate battery production will begin in 2026 at their battery park in Michigan.

Ford was expected to start production of their next electric pickup truck at their new facility in Tennessee next year. This, however, has been pushed back all the way to 2027.

Chief executive Jim Farley maintains Ford’s stance on affordable batteries,

averring that a competitive EV must have a competitive battery.