Foreign rivals see opening as Ford adjusts EV strategy
The US automaker has shelved plans for its next all-electric SUVs and replaced them with hybrids that come with a better range when combined with gasoline engines.
Making big changes to its EV strategy in North America, Ford has announced a new roadmap that will focus on affordability and hybrid models.
The US automaker has shelved plans for its next all-electric SUVs and replaced them with hybrids that come with a better range when combined with gasoline engines.
The shift, which is a nod to the price-conscious US market, comes with a price tag: USD 400 million to write down the equipment in place to manufacture the all-electric SUVs and an eventual cost that will exceed USD 1.5 billion.
However, Ford said it will save on costs by enhancing battery sourcing and manufacturing efficiency. In the future, 30% of its annual capital expenditures will be dedicated to pure EVs, down from the current 40%.
“We learned a lot as the No. 2 US electric vehicle brand about what customers want and value, and what it takes to match the best in the world with cost-efficient design, and we have built a plan that gives our customers maximum choice and plays to our strengths,” Ford CEO Jim Farley said in a statement.
Ford’s new low-cost EV platform will include a mid-size electric truck in 2027 and an electric van in 2026.
Meanwhile, leading non-American automakers like Kia, Hyundai and Volvo could take advantage of this opening in the US market.
