Ford Motor Co. said Thursday it will postpone production of at least two new electric vehicles and shift production to more hybrid vehicles. The decision was the latest sign that major automakers are being forced to rethink their electric vehicle strategies as sales of electric vehicle models slump.
In addition to Ford, other companies such as General Motors and Mercedes-Benz have postponed their electric vehicle plans, largely because these companies have not yet built and sold enough electric vehicles to make a profit. It is difficult to raise it.
Although sales of such vehicles are still increasing, they have slowed in recent months as automakers cultivated a large number of early adopters who were willing to spend $50,000 or more on new battery-powered vehicles. The pace has slowed down rapidly. Both companies have not been able to introduce more affordable models because they are still researching ways to make cars and their batteries more cost-effectively.
Some consumers are reluctant to buy electric models because they worry about not being able to charge their vehicles at home or not having enough public chargers available when they want to travel more than a few hundred miles. Masu.
Many car buyers interested in electric vehicles appear to be opting for hybrid vehicles, which cost only a few hundred dollars more than comparable gasoline-only models. As a result, Ford said Thursday it hopes to offer a hybrid version of every model it sells by the end of the 2010s.
The company said it now plans to begin production of the large electric sport utility vehicle at its Oakville, Ont., factory in 2027, two years later than planned. Ford is building a new plant in Tennessee that will start producing electric pickup trucks in 2026, a year later than originally planned.
“We are committed to using our capital wisely to bring the right gas, hybrid and all-electric vehicles to market at the right time to drive profitability. We are committed to expanding our high-quality EV business.”
The slump in sales has also hit Tesla, the leading electric car maker in the United States. The company reported this week that electric vehicle sales fell an unexpected 8.5% in the first three months of the year.
Ford said Wednesday that electric vehicle sales in the quarter rose 86% to 20,223 vehicles, but the total was well below the levels the company had previously aimed to achieve and it cut some prices. It was later.
The company sold more than 7,700 units of its flagship electric model, the F-150 Lightning pickup, in three months. Ford had hoped to be able to produce about 150,000 Lightning trucks a year by last summer. The company recently reduced Lightning production from two shifts per day to one.
Two years ago, automakers including Ford, GM and Volkswagen were planning to introduce dozens of new electric cars and trucks, anticipating that consumers would quickly shift from gas-powered cars to electric vehicles.
However, in the second half of 2023, electricity sales growth declined significantly, forcing manufacturers to scale back their plans. Both Ford and GM are also delaying construction of new factories that will supply battery packs for new electric models.
Ford's electric vehicle division lost about $4.7 billion last year before interest and taxes. By contrast, the division that makes gasoline and hybrid cars for consumers posted a profit of $7.5 billion.