Ford Motor announced on Thursday that it has postponed the launches of its three-row electric vehicles (EVs) in Canada and its next-generation electric pickup truck in Tennessee. This decision comes as the global slowdown in EV demand prompts automakers to reassess their production strategies.
Shifting priorities towards hybrid electric vehicles
Amidst the challenging landscape for EVs, Ford revealed plans to enhance its hybrid electric vehicle offerings. By 2030, the company aims to integrate hybrid powertrains across its range of gas-powered vehicles, signalling a strategic shift in response to market dynamics.
Ford’s CEO Jim Farley emphasised the commitment to building a profitable EV business while ensuring prudent capital utilisation and strategic timing for the introduction of gas, hybrid, and fully electric vehicles.
Financial challenges and adjusted projections
Ford’s EV business faced significant losses, amounting to nearly USD 4.7 billion in 2023, with projections indicating further losses between USD 5 billion to USD 5.5 billion this year. The company stated in February that the launch of the next generation of EVs would only occur when profitability is assured.
Delays in EV launches
The planned launch of a new large EV SUV, set to be manufactured at the Oakville assembly complex in Ontario, has been postponed to 2027 from the initially scheduled 2025. This delay aims to align with the development of the consumer market for three-row EVs and leverage emerging battery technologies.
Additionally, the delivery of an all-new EV truck, intended to be produced at a new facility in western Tennessee, has been pushed back to 2026. Ford had previously outlined plans to commence production in late 2025, targeting an annual output of up to 500,000 electric trucks.
Ensuring quality amid production changes
Ford intends to commence customer deliveries of the new electric truck in 2026, gradually increasing production to ensure optimal quality standards. This strategic approach reflects the company’s commitment to delivering reliable and high-quality electric vehicles to consumers.
Adjustments in investment plans
Last year, Ford’s Chief Financial Officer, John Lawler, announced the postponement of some multibillion-dollar investments in new EV and battery production capacity. This decision underscores the need for flexibility in response to evolving market conditions.
Industry-wide challenges
The U.S. Environmental Protection Agency’s recent relaxation of EV requirements, coupled with increased incentives for plug-in hybrid vehicles, reflects broader shifts in regulatory frameworks impacting the EV market.
Implications for workers and unions
The decision to delay EV launches has implications for Ford’s workforce and the broader automotive industry. Unifor, Canada’s union representing autoworkers, expressed disappointment over the impact on workers at the Oakville assembly plant.
General Motors (GM) faced similar challenges, announcing a delay in the production of electric pickup trucks at its Michigan plant. These developments underscore the complexities faced by automakers amid the evolving landscape of electric mobility.