Ford is pulling back on its electric vehicle (EV) plans, announcing major cuts to its Model e division.
In a statement released on Wednesday, the automaker confirmed that it’s canceling a 7-seater electric SUV and delaying the launch of a new electric pickup truck.
The brand revealed that it’s slashing its overall EV investment by 10%, redirecting resources to focus more on hybrid vehicles.
Ford will now allocate only 30% of its budget to future EV investments.
This change is partly driven by the need to stay competitive with the Chinese car industry. To do this, Ford is revamping its battery supply chain to cut costs and improve efficiency.
But this shift comes with a hefty price tag. Ford, already losing about $140,000 on every electric car it makes, expects to take a $400 million hit in write-downs, alongside an increase in costs of $1.5 billion.
Despite these challenges, Ford's CFO John Lawler emphasized that the company is focused on building a profitable business.
"We are committed to creating long-term value by building a competitive and profitable business," Lawler said in the press release.
With this new strategy, Ford will put more emphasis on hybrid vehicles, a move that could significantly impact its European operations by 2027.
