Ford on Wednesday acknowledged America’s electric vehicle market just isn’t what the automaker expected it to be: Customers are increasingly price-conscious and range-anxious. So, Ford is making big changes to its EV plans, focusing on hybrids and affordability. Additionally, the new Ford EV strategy involves a significant shift in resources toward developing innovative models and expanding charging infrastructure. #FordEVStrategy
The company announced Wednesday that it is adjusting its roadmap for North American vehicles to include a broader range of electrification options, including lower prices — and longer ranges.
Ford ditched plans for its next lineup of all-electric SUVs, replacing them with hybrid models, which typically offer shorter battery range but longer overall range when combined with a gasoline engine.
That plan alone will cost the company at least $400 million because it needs to write down the manufacturing equipment it had put in place to build the EV SUVs it no longer plans to build. Ford said the change in plans could ultimately cost it upwards of $1.5 billion.
But the company also said it would improve its battery sourcing and increase manufacturing efficiency to save on costs. And just 30% of the company’s annual capital expenditures will be dedicated to pure electric vehicles in the future — down from 40%.
Ford trails Tesla in EV production in America, yet its EV business is growing rapidly. The Ford F-150 Lightning remains the best-selling electric truck in the United States. Despite this success, hybrid vehicles are gaining popularity, prompting Ford to adapt to current customer preferences.
In conclusion, these changes in the Ford EV strategy reflect the company’s commitment to sustainability and technological advancement. As Ford implements these major shifts, it will likely influence the broader automotive landscape. #FordEVStrategy
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