Ford Motor Company has announced it is delaying production of the planned launches of three-row EVs in Canada and its next-generation pickup truck in Tennessee.
Instead, it will boost the hybrid electric vehicle offerings. By 2030, Ford expects to offer hybrid powertrains across this lineup of gas-powered vehicles. They said they will continue to invest in EVs but will postpone production of the large SUV at a plant in Canada from 2025 to 2027 to allow the market to grow more.
This is in addition to the cancellation of $12 billion in planned spending on new EVs, which they announced last year. Ford expected to lose $4.7 billion on its EV business in 2023, but it’s worse than that.
They said they will only launch the new line of EV models when they can be profitable. In the first quarter of the year, Ford’s EVs increased by 86% over last year, and the hybrids increased by 42% over last year. Traditional vehicles were up 2.6%.
Of course, they had to lose about $25,000 on their EVs!
Much of Ford’s EV sales gain was driven by the F-150 Lightning, which recorded a 74% sales increase compared to the prior year’s fourth quarter and a 55% increase for the full year. Between the F-150 Lightning, Mustang Mach-E, and the E-Transit, Ford secured America’s No. 2 EV brand for 2023.
However, “the company is still burning cash on each EV that rolls off its production line. In fact, Ford previously estimated its EV business unit, Model E, would lose roughly $4.5 billion in 2023,” Motley Fool says.
“Management believes Ford will bring costs down enough and accelerate production to churn profits from its Model E unit by the end of 2026, but for now, a record quarter in EV sales also means a less lucrative full-year earnings result,” Motley Fool concluded.
Motley Fool says, “It’s darkest before dawn.” There’s another expression, “Read the tea leaves.” The cars aren’t there yet, but China is working on that. Soon, we will be wholly dependent on them for our vehicles as Biden and his Democrats eviscerate the gasoline engine for no good reason – just ideology and the climate scam.
Must watch before you buy an EV:
According to Statista, Chinese EV car sales are soaring. They will own us.
Chinese EVs are continuing to make inroads around the world. This is reflected in the country’s car export figures which have been soaring post-pandemic. Chinese car exports rose from around 1 million to 2 million between 2020 and 2021 to much media fanfare and have continued to climb even more dramatically in the years since. In 2023, they reached almost 5 million, according to data from the China Association of Automobile Manufacturers.
Subscribe to the Daily Newsletter
