Ford’s U-turn on Electric Vehicles. They’re making this decision and it’s got the entire auto industry on edge.
Unlike in Europe, the race to develop electric vehicles and replace internal combustion engine vehicles has been driven by powerful North American auto corporations and has not been part of a sustained government policy. This may have contributed to the fact that Some of these influential brands are slow to invest in this new technology.This is despite the fact that Tesla remains an iconic electric vehicle brand.
Ford is one of those companies that tried to compensate for the delay in entering the competition with large investments and set a goal that now seems unattainable: to produce and sell only 100% electric cars starting in 2030. But now the brand admits that things have not gone as expected, the electric car market has slowed down, and the investments they are making are not yielding the planned results. On the contrary, they claim that on every electric car sold they lose up to $50,000.
Goodbye, 7-seater SUVs
One of the most radical measures taken by Ford was the cancellation of a seven-seat electric SUV that was supposed to go on sale in 2025.and its transformation into a hybrid all-terrain vehicle project that still has no release date. Two factors influenced this decision: falling demand for electric vehicles in the North American market, and the increasingly high costs and difficulties in obtaining battery materials.
John Lawler, Ford’s chief financial officer, told the press: “We looked at the segment and the size of the battery that would need to be in a pure electric vehicle, the cost structure, the price… and we were unable to build a car that met our requirements and was profitable in the first 12 months after launch.“.
Ford Keeps Plans to Go 100% Electric, But Not So Soon
However, This doesn’t mean Ford is abandoning its plans to produce exclusively electric vehicles in a few years.You simply review your roadmap and adapt it to the realities of the market. The company will reduce investments planned for the development of electric vehicles by 10%, increasing from 40% to 30%, and will take on additional losses and expenses of $ 1.7 billion.
In Europe, the iconic North American company recently launched two 100% electric SUVs: Ford Explorer Electric and Ford Capri.. On the other hand, this company, a pioneer in mass production of cars, has been around for over 120 years, continues to develop and produce other 100% electric models, such as the Ford Puma Electric and an all-electric version of the Focus. They also announced an electric version of the 2026 Ford Fiesta.
Somewhat bleak outlook for electric vehicles
Ford’s challenges with its electric vehicle program are not unique to the company.In fact, in Europe there have been delays in Mercedes Benz’s electric vehicle plans, Audi’s plans have been changed and restructured, and construction of new plants at Stellantis has been postponed.
Overall, sales of electric vehicles worldwide, although continuing to grow, are not meeting the expectations of major brands. And this largely due to the high prices for this class of carsand the material challenges that battery factories continue to face. However, Ford is not abandoning its electrification plans, which it continues to pursue in part thanks to tax incentives. granted by the North American government to promote the production and marketing of electric vehicles.