Visitors view the titanium hybrid 2020 Ford Escape FWD small SUV at the Canadian International Auto Show on February 18, 2020 in Toronto, Ontario, Canada.
Chris Hellgren | Reuters
Detroit – ford motor is delaying production of new all-electric large SUVs and pickup trucks as it moves toward offering hybrid options across its North American lineup by 2030.
The Detroit automaker said Thursday it will continue investing in electric vehicles, but production of the three-row SUV at a Canadian factory will be pushed back from the originally planned 2025 to 2027. He is scheduled to be postponed from late 2025 to 2026.
The changes to EV plans are the latest for Ford and the auto industry as a whole, as adoption has been slower than most expected and production costs remain high.
Last year, Ford announced that it would postpone or cancel planned spending of $12 billion on new electric vehicles due to changing market conditions and the difficulty of making and selling vehicles profitably.
The Ford brand ranked second behind Tesla in EV sales in the first quarter of this year, but the Detroit automaker ranked third overall as a company.Tesla too hyundaiElectric vehicle sales, including those from Kia and Genesis, outpaced Ford.
“As America’s No. 2 EV brand for the past two years, we’re committed to using our capital wisely to bring the right gasoline, hybrid and all-electric vehicles to market at the right time to deliver profitable, We are committed to expanding our EV business.” CEO Jim Farley said in a statement Thursday.
Ford brand ranks second in EV sales tesla But as a company, the Detroit automaker ranked third in EV sales in the first quarter or this year. Both Tesla and Hyundai, which include the Kia and Genesis brands, have outsold Ford in EV sales.
The three-row SUV was part of an approximately $1.3 billion investment to transition Ford’s Oakville assembly plant in Ontario, Canada, into a new electric vehicle hub. It would have been Ford’s first time to completely renovate a North American gasoline car manufacturing facility to an EV manufacturing facility.
“The additional time will further develop the consumer market for three-row EVs and allow Ford to take advantage of new battery technology, with the goal of delivering increased durability and better value to our customers.” the company said in a release.
Ford continues its EV initiatives. The BlueOval City campus in Tennessee will replace its current facility, which produces engine-powered vehicles, with an all-electric model.
“Our ground-breaking next-generation EV is new from the ground up, fully software-enabled, with an ever-improving digital experience and a host of potential services,” Farley said.
Ford stock price over the past 5 years
The automaker announced that its large Tennessee facility, part of an $11.4 billion investment announced in 2021, will begin production of Ford’s next-generation all-electric truck in 2026 instead of 2025. .
Ford announced it is continuing construction of battery factories in Michigan, Tennessee and Kentucky.
In the first quarter of 2024, Ford’s electric vehicle sales increased 86% from depressed levels in the same period last year. Sales of Ford’s hybrid vehicles increased 42% year over year, while sales of Ford’s conventional vehicles with internal combustion engines increased 2.6%.
Ford’s Model E electric vehicle business posted a loss of $4.7 billion in 2023, including $1.57 billion in the fourth quarter. The company announced in February that it expected the division to incur losses of $5 billion to $5.5 billion in 2024.
