Ford announced last year it’s shifting focus from EVs to plug-in hybrids, following in the pathway of Toyota. That was an abrupt change many mocked, either because they thought the strategy was foolish from the get-go or because they thought the Blue Oval was going backwards while being cowardly. But new information is shedding light on the financial damage Ford has been taking with each EV model it’s sold.
While Ford isn’t pulling the plug on its EV lineup, the automaker has cut production as it loses over $100,000 per battery-powered car sold. The company is also delaying new EV model lines while scaling back or postponing battery plant plans, reports Bloomberg.
Basically, EVs have become a monkey on Ford’s back, and it’s not alone.
According to a source who spoke to Bloomberg, Ford has been slashing order from its battery suppliers to try staunching its financial wounds. The move has also been made as consumers are pulling back from EVs, a change we saw coming but many didn’t want to acknowledge.
The report not only claims Ford is looking to cut $12 billion in EV expenditures, but that losses from battery electric vehicles will wipe out profits the company makes from traditional cars, trucks, and SUVs.
We’d say that if true, this constitutes a disaster for Ford. It’s no wonder a spokesman didn’t want to officially comment on what Bloomberg found.
This, combined with the troubles Tesla, Rivian, and others have suffered in the EV market seems to have put a chill on enthusiasm over pushing ahead. And yet some automakers, like Ford, have encouraged government regulations which will push the entire industry in that direction. We have to wonder at what point will the industry in general clamor for those regulations to be rolled back?
Image via Ford
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