Ford scales back EV plans citing price pressures

Just a few years ago, Ford outlined plans for an aggressive push to electric vehicles, with hopes to produce some two million a year by 2026.

It launched an electric version of its best-selling F-150 pickup truck in 2022 to great fanfare.

But Ford, like others in the industry including rival General Motors, had already said it would scale back its investments and ambitions, spooked by signs of weaker than expected consumer demand and preference for hybrids, which use a combination of fossil fuels and battery power.

Though sales of electric cars in the US have picked up again in recent months, competition has kept pressure on carmakers.

Ford reported last month it had sold more than 50,000 electric cars since the start of the year, up more than 60%.

But its electric business also lost nearly $2.5bn.

Ford said it was moving some battery production to the US from Poland, as part of its strategy to lower costs. The move will allow the firm to access government incentives from the Inflation Reduction Act.

“An affordable electric vehicle starts with an affordable battery,” Mr Farley said. “If you are not competitive on battery cost, you are not competitive.”

Ford had initially expected to begin production of its next electric pickup truck next year at a new factory in Tennessee. That launch has been postponed until 2027, it said.

Ford will also offer a hybrid version of its large, three-row SUV, instead of an all electric, battery-powered model as planned.

It said it was focusing its all-electric efforts on a van for business customers, with assembly starting in Ohio in 2026.