Ford reshuffles EV business in a bid to bring down costs

Ford announced on 21 August 2024 that it is altering its electric vehicle (EV) strategy in a bid to “reach more customers, improve profitability, [and] continue to reduce CO2.” As part of the reshuffle, the automaker is halting a previously planned all-electric three-row SUV and scheduling a new battery-powered commercial van for 2026, followed by two new pick-up models in 2027. It will also revise battery production by focusing on cost reductions, higher capital efficiency, and qualification for Advanced Manufacturing Tax Credits.

In total, the course correction could cost Ford around US$1.5bn, as well as US$400m in impairment charges for the now unutilised three-row SUV assets; the next models will use hybrid propulsion technologies instead. The news comes almost a month after Ford decided to retool a plant in Ontario, Canada, to produce more gas-powered Super Duty pick-ups instead of EVs.