Mega Stromer losses

Ford pulls the ripcord on large electric SUV

(Bild: AP ( via APA) Austria Presse Agentur/AP)

Ford is fundamentally changing its model plans in the highly competitive market for electric cars: planned electric vehicles are coming as hybrids or simply much later, while other models are being planned more cost-effectively. The reason: this year alone, the US manufacturer is expecting to lose around five billion euros on electric vehicles.

Specifically, the Group is pulling the ripcord on the planned large E-SUV with three rows of seats - it is to get a hybrid engine instead. In addition, the successor to the F-150 Lightning heavy-duty pick-up truck has been further delayed, initially from 2025 to the second half of 2027. Ford wants to focus on electric delivery vans from 2026 and two medium-sized, more affordable pick-ups from 2027.

"These electric vehicles will be more cost-effective," explained Ford CEO Jim Farley. CFO John Lawler added that the timetable had been changed due to the prevailing pressure on prices and margins of electric cars. The aim is to make new models profitable within a year.

SUV rejection costs real money
The decision against the large SUV, which was to be built in Canada, means a write-off of 400 million dollars and additional costs of up to 1.5 billion dollars, Ford explained. Nevertheless, the share price reacted to the announcement with gains before the start of trading.

Market is becoming more difficult
The car manufacturer justified the rescheduling with competition from lower-cost competitors from China. In addition, customers with greater price awareness than the pioneering electric car buyers would now have to be won over. A globally competitive cost structure and targeted offers are all the more necessary for profitable growth. Ford expects to lose up to 5.5 billion dollars (just under 5 billion euros) on its electric vehicles this year alone.

One reason for the further delay of the F-150 Lightning: Ford wants to use a more cost-effective battery technology. The company is changing its plans for the batteries due to the Inflation Reduction Act (IRA) subsidies in the USA: instead of working with the South Korean manufacturer LG Energy Solution in Poland, the batteries for the electric Mustang are to be manufactured in the USA. "An affordable electric vehicle starts with an affordable battery," said Farley.