Ford said on Wednesday it would scrap plans to produce a three-row electric SUV as the U.S. electric vehicle (EV) market continues to struggle. [emphasis, links added]
The company announced it expects to take up to $1.9 billion in writedowns and other special charges related to its decision after losing billions on its electric vehicle lineup in 2023.
In addition to canceling its three-row electric SUV, Ford has also pushed back its plans to launch an electric pickup truck until 2027, pushing the move back a year.
Ford initially moved up plans for its three-row electric SUV by two years to 2024, pushing the launch date from 2025 to 2027.
In addition to announcing that it could take up to $1.9 billion in charges and writedowns, Ford lost about $130,000 per electric vehicle sold in the first quarter of 2024.
The broader U.S. electric vehicle market has struggled as consumer demand for electric vehicles has not been as strong as proponents initially expected.
All companies except Ford are losing money on their electric vehicle lineups, many are cutting prices to attract hesitant consumers, and executives are abandoning some near-term production targets.
“We are launching multiple electric vehicles in Europe this year. We are aligning the company's North American vehicle roadmap to deliver a range of electrification options designed to accelerate customer adoption, including lower prices and longer range,” Ford a spokesperson told the Daily Caller News Foundation. “As part of our all-electric portfolio, Ford will prioritize a new digitally advanced commercial van in 2026, followed by two new advanced pickup trucks in 2027 and other future affordable electric vehicles.”
“As we said before, We will not release a vehicle unless it is profitable within 12 months of release,” the spokesperson continued, adding that Wednesday's announcement “reflects our passion to evolve quickly with the market to have competitive products that customers love while also being profitable.
Ford's announcement Wednesday is the latest sign that the Biden administration's electric vehicle agenda is in trouble. The plan's goal is for electric vehicles to account for 50% of all new car sales in the United States by 2030.
Ford has been a beneficiary of the Biden administration's push for electric vehicles, including a conditional agreement with the Department of Energy (DOE) for a $9.2 billion loan to assist a joint venture created by Ford and South Korean battery company SK On.
More broadly, Governments are aggressively regulating and spending billions to increase electric vehicle production and adoption over the next ten years.
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