Even early adopters and those seeking to reduce their CO2 emissions wilt at some EVs’ first-year depreciation of 50 percent.
Automakers, too, are feeling the heat. In a press release Ford said it was to broaden choices for customers as it “adjusts its rollout of pure electric vehicles to deliver a capital-efficient, profitable electric vehicle business.” It also noted that Chinese automakers have “advantaged cost structures including vertical integration, low-cost engineering, multi-energy advanced battery technology and digital experiences.”
By killing its three-row SUV and delaying a next-generation pickup, Ford is hoping to stem losses resulting from its previously ambitious EV plans, which went as far as to state that in Europe its coming vehicles were paving a way for “an all-electric future”.
“It’s coming back to understanding the customer, understanding how this is going to transition over time,” Lawler said in this morning’s media briefing. “It’s about providing them those choices that meet their duty cycles and their needs, and that is giving them the options between full battery electric vehicles, hybrid technologies.”
Future Fords Must Make Money
In a hostage to fortune, Lawler said that Ford would not launch any EVs in the future unless they can be profitable within 12 months.
“We are launching multiple electric vehicles in Europe this year,” Ford said in a statement, referring to the EU-only Ford Explorer EV and the Capri built on the same platform borrowed from rival VW’s ID.4. “We are adjusting the company’s North America vehicle roadmap to offer a range of electrification options designed to speed customer adoption, including lower prices and longer ranges.”
The Ford statement added that “scores of new electric vehicle choices hitting the market over the next 12 months and rising compliance requirements” were causing pricing pressures. “These dynamics underscore the necessity of a globally competitive cost structure while being selective about customer and product segments to ensure profitable growth and capital efficiency,” explained the statement.
Among the cost-cutting, Ford is delaying its T3 electric truck, thought to be a more advanced successor to the F-150 Lightning, to the second half of 2027. It was supposed to start production next year. The truck will be assembled at BlueOval City’s Tennessee Electric Vehicle Center. Ford also plans to introduce an all-new, fully electric commercial van that is slated to begin production in 2026 in Ohio.
Lawler said that Ford has “multiple hybrid technologies under development” and is working on other powertrain options. “We’re going to continue to provide gas vehicles and diesel vehicles, because there’s a demand for those and that’s going to continue,” he confirmed.
“Our focus here is to remake Ford into a high growth, higher margin, more capital, and an efficient and durable business,” Lawler said.
EVs need to turn a profit, he stressed. “And if they’re not profitable, based on where the customer is in the market, we will pivot and adjust and make those tough decisions, and that’s what we’ve done.”
Ford is not the only automaker in pivot mode. General Motors and Honda ditched a plan to codevelop low-cost EVs last year, with GM preferring to prioritize hybrids. VW of America, too, said recently that a “balanced approach is the best way.”
Correction: This article has been changed to reflect that Ford’s EV sales have grown in the first quarter of 2024; that the T3 truck was supposed to start production in 2025; and that Ford’s previously announced all-electric future plans were in relation to the EU.
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