Ford Motor has announced a delay in the launch of three-row electric vehicles (EVs) in Canada and its next-generation electric pickup truck in Tennessee, citing a global slowdown in EV demand.
The company stated that it is revising its production plans in response to the changing market conditions.
In a separate statement, Ford revealed plans to expand its hybrid electric vehicle offerings.
By 2030, the company aims to offer hybrid powertrains across its entire lineup of gas-powered vehicles.
Ford CEO Jim Farley emphasized their commitment to building a profitable EV business while using capital efficiently.
He stated: “We are committed to scaling a profitable EV business, using capital wisely and bringing to market the right gas, hybrid and fully electric vehicles at the right time.”
Ford reported significant losses in its EV business, with nearly $4.7 billion lost in 2023 and projected losses of $5 billion to $5.5 billion for this year.
The company announced in February that it would only launch the next generation of EVs when they can be profitable.
Shares of Ford rose by 1.4 per cent in midday trading following the announcements.
Regarding specific product delays, Ford will postpone the launch of a new large EV SUV from 2025 to 2027.
This decision is to allow the consumer market for three-row EVs to further develop and to take advantage of emerging battery technology.
Additionally, deliveries of an all-new EV truck from a plant in Tennessee will be delayed until 2026, with production planned to begin in late 2025.
Ford intends to start customer deliveries of the new truck in 2026 and gradually increase production to ensure quality.
The company’s Chief Financial Officer, John Lawler, previously stated that Ford would delay some of its planned multibillion-dollar investments in new EV and battery production capacity.
The U.S. Environmental Protection Agency recently softened EV requirements starting in 2027 and further incentivized plug-in hybrid vehicles.
In 2020, during contract bargaining with Canada’s Unifor union, Ford pledged to invest $1.8 billion to retool its Ontario plant for EV production.
The overhaul of the Oakville assembly plant is set to begin by June 30 as planned, despite the delays in electric vehicle launches.
Unifor President Lana Payne expressed disappointment with Ford’s decision, noting that it impacts 3,200 workers.
She highlighted that Ford Edge SUV production at the Oakville plant is scheduled to end in about a month.
According to Reuters, General Motors also announced a delay in the production of electric pickup trucks at its Orion Township plant in Michigan, pushing the timeline back by a year.
