Image Source: PexelsSay goodbye to a vehicle that never should have been conceived in the first place. Customers don’t want it.Bye Bye Electric SUVThe Wall Street Journal reports Ford Cancels Plans for Electric SUV
Ford (F) is canceling plans for a large electric sport-utility vehicle and expects to take $1.9 billion in related special charges and write-downs, as automakers continue adjusting their EV plans because of softer-than-expected demand.
The Dearborn, Mich., automaker this spring said it would delay plans for an electric three-row SUV by two years to a 2027 release date. On Wednesday, the company said it is scrapping the model altogether, citing tough pricing pressure as automakers resort to aggressive discounts to move their EVs.
Ford instead will offer a hybrid gas-electric version of a future large, three-row SUV, a popular vehicle category that includes the brand’s Explorer and Expedition nameplates.
The company also pushed back the launch of a new electric pickup truck by one year, until 2027. In addition, Ford said it would trim its capital spending on fully electric vehicles to about 30% of its budget, from 40%.
Ford has said its EV business is on pace to lose about $5 billion this year. Executives have said the company is trying to reduce those losses on its current EV lineup while making sure future offerings turn a profit.
While Ford is recalibrating its plans to include more hybrids, it also is moving ahead with the rollout of several full EVs. It will start making an electric commercial van in 2026 and two new pickup trucks a year later.
Ford Chief Executive Jim Farley has said that China’s EV companies have the advantage of a lower-cost supply chain and that Ford needs to find ways to lower its own costs to compete.
“We believe that the fitness of the Chinese in EVs will eventually wash over our entire industry in all regions,” Farley told analysts last month.
Ford Loses $132,000 on Each EV ProducedOn April 26, I reported Ford Loses $132,000 on Each EV Produced, Good News, EV Sales Down 20 Percent
Ford (F) reports a huge loss on every EV. Sales are down 20 percent holding the losses to $1.3 billion.
Losses have been revised up twice and now tack on another $1.9 billion today.Congrats!Another Green Energy Company Declares Bankruptcy, Thank Biden’s TariffsOn August 10, I commented Another Green Energy Company Declares Bankruptcy, Thank Biden’s Tariffs
Conflicting goals often leads to the worst of both outcomes. That’s what’s happening with solar panels and EVs.
Conflicting goals are in play again today.Not only did Biden demand more EV to help the environment (but it will do no such thing),the administration also put restrictions on the use of foreign parts to drive up the costs.Lesson of the DayHuge losses are exactly what one should expect when government rather than customers drive business decisions.Despite huge subsidies, Ford still cannot make ends meet on EVs.Yet, due to government coercion, Ford is forced to try, try, and try again. If and when Ford succeeds, it will have more production capacity than it needs because EVs have less parts and are easier to build.Job losses are coming.A push towards EV will still happen, but at a much slower pace, more cheaply, and without so many losses.But at least $5 billion, and just for Ford alone, is now a sunken cost for a schedule that never should have been attempted.Thank you President Biden, AOC, Elizabeth Warren, and everyone else who created this mess.More By This Author:Was The Real Jobs Revision Negative 818,000 Or Negative 915,000?
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