(ConservativeJournal.org) – On Thursday, April 4, Ford revealed that it has decided to delay the production of its upcoming electric-powered SUVs and pickup trucks. This announcement comes amid Ford’s wider strategy change, from planning to offer only electric vehicles for its entire lineup in North America by the end of the decade, to now offering mostly hybrid options.
The automaker stated that it wants to continue to invest in electric vehicles (EVs). However, the production of some of the electric-only vehicles will be delayed to 2027 from its original target of 2025. This delay will also impact any other as of yet unannounced electric vehicles.
This shift in EV plans reflects the extensive challenges faced by not only Ford but the whole automotive industry. These include slower-than-expected adoption of EVs and high production costs. Last year, Ford announced a delay or cancellation of $12 billion in planned spending on new EVs due to changing market conditions and challenges in making profits. Despite ranking second in EV sales in the US, bested only by Tesla, during the first quarter of this year Ford placed third overall as a company in EV sales. Both Tesla and Hyundai outsell Ford in the EV market.
The postponement of the SUV production is part of Ford’s approximately $1.4 billion investment to transform its Oakville Assembly Plant in Ontario, Canada, into a hub for making and testing EVs. This delay should provide additional time to prepare the consumer market for bigger types of EVs to evolve. It will also allow Ford to use newer battery technology to offer customers increased durability and better value.
The company emphasized its commitment to developing EVs with new and improved technology. They also plan to focus on new plants, such as the one in Tennessee. Rather than transitioning existing facilities from producing gas-powered vehicles to all-electric models, these should focus solely on EVs.
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