Ford Motor Company is revamping its electric vehicle program in response to weaker consumer demand and shifting market conditions. The automaker pointed to customers’ expectation of lower-cost models and vehicles with a longer range, and the growing market share for low-cost EVs from Chinese manufacturers as factors in its plan to introduce different and more affordable products.
The change in direction will mean Ford takes a $400-million loss from its current operations, and it will incur new costs of up to $1.5 billion, it stated.
Ford is preparing to introduce two new electric pickup trucks and a new electric commercial van, but it has canceled plans for an electric three-row SUV.
The new commercial van will begin production in 2026, and the new electric pickups will start in 2027.
A new SUV option from Ford will have hybrid-electric propulsion, in recognition of consumers’ preference for more flexible vehicle propulsion options.
“We are committed to innovating in America, creating jobs, and delivering incredible new electric and hybrid vehicles that make a real difference in CO2 reduction,” stated president and CEO Jim Farley. “We learned a lot as the No. 2 U.S. electric vehicle brand about what customers want and value, and what it takes to match the best in the world with cost-efficient design, and we have built a plan that gives our customers maximum choice and plays to our strengths.”
Ford described its program to develop a “new affordable electric vehicle platform,” responding to the changes in that sector and aiming “to bend the cost curve on electric vehicles, allowing the company to introduce multiple vehicle styles for both retail and commercial customers at a faster pace, with more personal digital customization.”
In addition, Ford is reorganizing its electric battery sourcing plans to cut costs, maximize capacity, and promote current and future EV production plans.
