Confronting contest from automakers with reduced costs, Ford Motor Co is switching its electric vehicle strategy and now will concentrate on making two new electric pickup trucks and a new commercial van. The company states all will cost not much, have prolonged range and be beneficial within a year of approaching showrooms.
Ford provided little information about the new products, while losing millions on its existing EVs. However, it stated that the next generation full-size electric pickup truck will be produced after 18 months, until 2027.
The company also states that because of the high cost of batteries, it will not be producing fully electric three-row SUVs and will instead concentrate on producing those vehicles as gas-electric hybrids.
A small team in California is developing new underpinnings for a mid-sized truck that will be the other new model. In 2027, it will also go on sale. At an assembly plant west of Cleveland, manufacture of the unidentified van will begin.
Due to the changes, Ford will have to write down $400 million of its present assets and anticipate up to $1.55 billion in extra costs.
Building a profitable and competitive firm is our commitment to produce long-term value, according to a statement from Chief Financial Officer John Lawler.
The company also announced a reduction in capital expenditures for EVs. Instead of the present forty percent of its yearly capital expenditure, it will now dedicate thirty percent to their development.
Ford, which has long talked about producing viable EVs, lost $2.46 billion on them in the first half of the year, which reduced its revenues from commercial and gas-powered vehicles.
In a prepared statement, the company stated that it had to adapt in order to compete with Chinese manufacturers who have cheaper production and engineering costs because the global EV industry is evolving quickly.
Simultaneously, automakers are introducing more EVs and current purchasers are more cost aware than early adopters.
According to the company, these dynamics highlight the need for a cost structure that is globally competitive while also being selective about customer and product sectors to confirm profitable growth and capital efficiency.
