Ford Motor Co. has delayed the launch of its new electric pickup trucks and a big electric SUV due to poor EV sales in the United States. The company will add gas-electric hybrids to its model roster.
The production of the highly anticipated EV pickup at a new Tennessee facility will not begin until 2026. The automobile manufacturer Oakville, Ontario, facility will produce the huge electric SUV with three rows of seats in 2027, according to The Guardian.
EV Sales in the US Declines
Ford's strategy move matches the decrease in US EV sales growth, which was 2.7% in Q1. This compares with last year's 47% rise, which drove record EV sales and a 7.6% market share. EV market share fell to 7.1%, while new car sales rose roughly 5 percent.
Hybrid sales rose 45% from January to March, despite EV sales' slowdown. Motorintelligence.com estimated a 34% sales surge for plug-in hybrids, which can go short distances on battery power before switching to gas-electric power.
Ford aims to provide hybrid versions of all its gasoline passenger vehicles in North America by the iend of the decade, suggesting a trend toward hybrid technology.
It is not the first time that Ford did a shift in strategy, according to TechCrunch. The company strategically changed its product selection in the 1980s to compete in the car industry. Ford released the Taurus in late 1985, competing with Japanese imports. Instead of being bulky and heavy, the Taurus was sleek, spacious, and inexpensive. Within three years of availability, Ford sold 1 million cars. This success helped the firm avoid bankruptcy.
(Photo : Lukas Schulze/Getty Images)
A electric Ford Explorer is seen as the German Chancellor Olaf Scholz visits the electric car production line at the Ford automobile factory on June 12, 2023 in Cologne, Germany.
Hybrid Expected to Overtake EVs
Meanwhile, Ford agreed to retool its Ontario facility for EV production in 2020 contract discussions with Unifor. Ford said on Thursday that the Oakville assembly plant upgrade will begin in the second quarter, despite the EV investment delay.
Analysts say that the future of hybrid cars is bright, but getting regular consumers to switch to electric vehicles remains a challenge as customers hesitate to transition to electric due to range and charging infrastructure issues.
Ford's Chief Financial Officer, John Lawler, notified investors last year that the firm would postpone some of its multibillion-dollar investment in EV and battery production capacity, according to Reuters.
Ford's recent decision comes after the Environmental Protection Agency last month granted greater incentives for plug-in hybrid automobiles and loosened EV regulations starting in 2027.
Ford expects EV pre-tax losses to rise from $4.7 billion last year to $5 billion to $5.5 billion this year. The business forecasts commercial vehicle revenues of $8 billion to $9 billion, up from $7.2 billion last year. Gasoline and hybrid sales are expected to stay between $7 billion and $7.5 billion, as last year.
In October, Ford's rival GM announced a year-long delay in electric pickup truck manufacturing at its Orion Township factory in Michigan.
TechTimes previously reported that Ford decreased the Mustang Mach-E electric SUV's pricing by $8,100 due to poor sales performance. Ford also reduced F-150 Lightning production at its Michigan Rouge Electric Vehicle Center to one shift this month.
