Ford Delays Launch Of Large Electric Pickup, Scraps Electric SUV Plans

NEW YORK, Aug 22 (Bernama-Xinhua) -- Ford Motor announced that it will postpone the release of its new large electric pickup truck by 18 months, pushing the launch to 2027, reported Xinhua.

The company has cancelled plans for a three-row electric sport-utility vehicle as part of its scaled-back efforts in the electric vehicle market.

It indicates the company is again slowing the pace of its investments and new battery-powered models though it had once hoped to race ahead of other established automakers in electric vehicles.

Ford is also reducing the money it plans to spend on electric vehicles to stem multibillion-dollar losses on the technology while adding plans to introduce a new electric delivery van in 2026. A new medium-sized electric pickup is expected in 2027 as well, the company said.

"The competitive nature of the market is changing globally," Ford's chief financial officer, John Lawler, said in a conference call. "That means these vehicles need to be profitable, and if not, we will pivot and adjust and make those tough decisions."

Lawler said investments in electric vehicles would now account for about 30 per cent of the company's capital budget, down from 40 per cent.

"Ford's shift comes as the rate of growth in electric vehicle sales has slowed significantly in the United States and Europe, prompting Tesla and other automakers to cut prices," said The New York Times in its report about the move. Last month, Ford reported that its electric vehicle division had lost US$2.5 billion in the first half of the year before certain expenses were considered.

"The announcement underscores the challenges facing US automakers as they seek to boost sales of EVs, a crucial technology in the fight against climate change, despite flagging consumer demand, supply chain challenges, and increased competition with Chinese carmakers," noted The Washington Post in its report.

"Carmakers are trying to strike a tricky balance on electric vehicles. Tougher tailpipe emissions rules, along with the rapid rise of Chinese EV makers, are pressuring them to invest in the technology. But consumer interest in EVs has waned after a burst of enthusiasm," said The Wall Street Journal on this topic.

--BERNAMA-XINHUA