Connect with us

Hi, what are you looking for?

Deluxe Investment Group – Investing and Stock NewsDeluxe Investment Group – Investing and Stock News

Stock

Ford delays new EV plant and cancels electric three-row SUV as it shifts strategy

DETROIT — Ford Motor is delaying production of a next-generation all-electric pickup truck at a new plant in Tennessee and canceling plans for a three-row electric SUV, the company said Wednesday.

Instead, Ford said it will prioritize the development of hybrid models, as well as electric commercial vehicles such as a new electric commercial van in 2026, followed by two EV pickup trucks in 2027.

The pickups are expected to be a full-size truck, which will be produced at the Tennessee plant that’s currently under construction in 2027, and a new midsize truck being developed by a specialized “skunkworks” team in California.

“As we’ve learned in the marketplace, and we’ve seen where people have gravitated, we’re going to focus in where we have competitive advantage, and that’s on commercial land trucks and SUVs,” Ford CFO John Lawler said Wednesday.

The actions are meant to better deliver a capital-efficient, profitable electric vehicle business, said Lawler, who also serves as vice chair of the automaker. But, in the short-term, they will cost the company.

Ford said it will incur a special non-cash charge of about $400 million for the write-down of certain product-specific manufacturing assets, including the cancellation of the three-row SUV.

The company said the changes may also result in additional expenses and cash expenditures of up to $1.5 billion. Ford will reflect those in the quarter in which they are incurred, as a special item.

Lawler said the company’s future capital expenditure plans will shift from spending about 40% on all-electric vehicles to spending 30%. He did not give a timeline for the change.

Vehicle production at the new $5.6 billion Tennessee site was initially expected to begin next year. The company said it still expects to begin battery cell production at the site in 2025.

The changes are the latest for Ford and come amid slower-than-expected adoption of EVs as well as automakers not being able to profitably produce the vehicles.

The new plans come roughly five months after Ford said it would delay production of the three-row SUV and next-generation pickup, codenamed “T3.”

“This is really about us being nimble and listening to responses from our customers,” Lawler said during a call Wednesday morning. “We’ve been out in the [EV] market here for over two years, and we’ve learned a lot, and what we’re understanding is that customers want more electrification choices.”

The rollout of Ford’s next generation of EVs will begin with a commercial van that will be assembled at Ford’s Ohio Assembly Plant starting in 2026, according to the company.

The automaker previously said it would not launch a vehicle if there wasn’t a clear path to profitability within the first year. It was a change from selling EVs at a loss to grow share and assist in meeting fuel and emissions standards.

Ford said it will continue to produce and update its current all-electric vehicles such as the Ford Mustang Mach-E crossover and F-150 Lightning pickup truck.

The company said it plans to provide investors an “update on electrification, technology, profitability and capital requirements” in the first half of 2025.

This post appeared first on NBC NEWS

Become a VIP member by signing up for our newsletter. Enjoy exclusive content, early access to sales, and special offers just for you! As a VIP, you'll receive personalized updates, loyalty rewards, and invitations to private events. Elevate your experience and join our exclusive community today!



    By opting in you agree to receive emails from us and our affiliates. Your information is secure and your privacy is protected.

    You May Also Like

    Latest News

    Florida Gov. Ron DeSantis (R) needs a massive infusion of cash in the next two months of the Republican presidential primary race to help...

    Editor's Pick

    ERP or Enterprise Resource Planning solutions help businesses of all sizes manage their daily business operations. First used in the 1990s, ERP systems have...

    Economy

    Amp’s 223.67% Leap: Analyzing the Sudden Spike The cryptocurrency community has recently been set abuzz by the phenomenal rise of Amp (AMP). Just in...

    Latest News

    The United States could be on track for a Joe Biden-Donald Trump rematch in 2024, but it’s the president’s son Hunter Biden who earned...

    Disclaimer: Deluxeinvestmentgroup.com, its managers, its employees, and assigns (collectively “The Company”) do not make any guarantee or warranty about what is advertised above. Information provided by this website is for research purposes only and should not be considered as personalized financial advice. The Company is not affiliated with, nor does it receive compensation from, any specific security. The Company is not registered or licensed by any governing body in any jurisdiction to give investing advice or provide investment recommendation. Any investments recommended here should be taken into consideration only after consulting with your investment advisor and after reviewing the prospectus or financial statements of the company.


    Copyright © 2024 deluxeinvestmentgroup.com