Ford (F) is trying to time itself with the market as it scales back its next-generation EV rollout and diversifies capital investments. Meanwhile, the Dearborn, Michigan-based automaker plans to expand its popular hybrid offerings.
Ford today announced that EV production at its massive Blue Oval City EV campus in Tennessee will be delayed from the original 2025 start date to 2026. Ford said facility installation is underway in the Blue Oval City, where the company plans to build its next generation electric truck, possibly the Project T3 full-size EV pickup to replace the current F-150 Lightning. .
Ford also said it is “postponing” future EV launches at its Oakville, Ont., plant, where it plans to build a next-generation three-row electric vehicle, likely a full-size SUV. The company aims to launch these vehicles in 2027, pushing back its original 2025 schedule. Ford also said construction is “advanced” at the Blue Oval SK joint venture battery plants in Tennessee and Kentucky, and at the Blue Oval Battery Park in Michigan, which also had construction delayed last year.
Finally, Ford said it will build the new commercial EV at an assembly plant in Ohio, with tooling scheduled to begin in spring 2025.
“As the No. 2 EV brand in the U.S. for the past two years, we are committed to using our capital wisely to bring the right gasoline, hybrid, and all-electric vehicles to market at the right time to grow our profitable EV business. We are committed to expanding our business,” Ford CEO Jim Farley said in a statement.
Ford's hybrid sales are strong, with first-quarter sales hitting a record high. Ford is expanding its EV offerings and said it expects all of its products to include hybrid powertrains by 2030.
Ford's decision to delay EV launches at these facilities was not unexpected, as hybrid sales are surging and EV sales require significant incentives at the dealer level. Late last year, the company also announced it was “pushing out” $12 billion in EV investment in case that capacity is needed.
“these [new EV] Over time, these efforts will help develop a differentiated and profitable EV business while ensuring Ford offers customers the right mix of gasoline, hybrid and electric vehicles based on today's demands. ,” the company said.
Ford is revising its EV plans and making investments, but EV spending this year will still be huge. Ford projects an EBIT loss of $5 billion to $5.5 billion for its Model E EV division in 2024, indicating wider losses for the division compared to 2023.
Pras Subramanian is a reporter for Yahoo Finance.you can follow him twitter And even more Instagram.
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