Ford Shifts Electric Vehicle Strategy Amid Increasing Competition

Facing competition from automakers with lower costs, Ford Motor Co will shift its focus to two new electric pickup trucks and a new commercial van. Ford aims for profitability within a year, pushing back production of its electric pickup to 2027 and opting for gas-electric hybrids for SUVs.

Ford Motor Co is repositioning its electric vehicle (EV) strategy in response to mounting competition from lower-cost automakers. The company plans to introduce two new electric pickup trucks and a commercial van, aiming for these vehicles to be cost-effective, have extended range, and achieve profitability within a year of debuting in showrooms.

Current EVs have been a financial drain on Ford, leading to a loss of USD 2.46 billion in the first half of the year. The company has delayed the production of its next-gen full-size electric pickup truck by 18 months, pushing its launch to 2027. Additionally, Ford will focus on creating gas-electric hybrids for its three-row SUVs due to high battery costs.

To realign with market dynamics and become competitive against cheaper Chinese manufacturers, Ford will reduce its capital expenditure on EVs from 40 per cent to 30 per cent of its annual budget. The company will incur a USD 400 million write-down and up to USD 1.5 billion in additional expenses. Despite these shifts, Ford's CFO John Lawler stated the company's commitment to building a competitive and profitable business for long-term value.

(With inputs from agencies.)