Ford Motor on Thursday delayed production of at least two new electric vehicles and said it would pivot to making more hybrids. Its decision is the latest sign that major automakers have been forced to rethink their strategy for electric vehicles as sales for those models slow.
The shift by Ford and automakers such as General Motors and Mercedes-Benz, which have also pushed back on their electric car plans, was prompted largely by the companies’ difficulties in making and selling enough electric cars and manufacturing it’s already profitable.
Sales of such vehicles are still growing, but the pace has slowed dramatically in recent months as automakers tap many of the early adopters willing to spend more than $50,000 on a new vehicle. battery powered. Because they are still learning how to make the cars and their batteries at a lower cost, the companies have not been able to release more affordable models.
“A lot of companies are rushing into EVs that are too expensive and there’s not as much of a market for them as they think,” said Sam Abuelsamid, chief analyst for transportation and mobility at research firm Guidehouse Insights. “That made it harder to sell those cars.”
Some consumers are also reluctant to buy electric models because they can’t charge cars at home or worry that there won’t be enough public chargers available when they want to travel more than two hundred miles. .
Many car buyers interested in electric vehicles appear to be opting for hybrid cars, which can cost just a few hundred dollars more than comparable gasoline models and in some cases offer better fuel economy. Those cars are easier for consumers to get used to because they don’t have to be plugged in and powered like standard models.
Andy Goodrich, a retired software engineer in Ann Arbor, Mich., is considering buying a Tesla Model 3 or a Rivian sport-utility vehicle, but has concerns about finding charging stations. In the end, he chose a Toyota RAV4 Prime plug-in hybrid, which can go nearly 40 miles on electric power alone before switching to a gasoline engine.
“I do most of my driving locally, so I can go a week or more without using any gas,” Mr. Goodrich, 72. “I charge my garage overnight and I’m ready for the day. If I need to go to Grand Rapids or something, then the gas engine will get me there.”
Ford said Thursday it hopes to offer a hybrid version of every model it sells by the end of the decade. It already produces hybrid versions of two pickups — the Maverick and the F-150 — and its Escape crossover.
The company said it plans to begin production of the large electric SUV at its plant in Oakville, Ontario, in 2027, two years later than originally planned. The plant Ford is building in Tennessee will begin production of the electric pickup truck in 2026, a year later than originally scheduled.
“We are committed to scaling a profitable EV business, using capital wisely and bringing to market the right gas, hybrid and fully electric vehicles at the right time,” said Ford chief executive, Jim Farley, in a statement.
Ford set up a small team in Irvine, Calif. — away from the company’s headquarters in Dearborn, Mich. — to develop components that can be used to make electric cars more cheaply. That group is led by a former Tesla executive, Alan Clarke.
“We’re also realigning our capital, shifting more focus to smaller EV products,” Mr. Farley said on a conference call in February. Ford’s electric vehicle business lost $4.7 billion before interest and taxes in 2023. By contrast, the division that makes gasoline and hybrid vehicles for consumers earned $7.5 billion.
The sales slowdown is also hurting the top maker of electric models in the United States, Tesla. This week, it reported an unexpected 8.5 percent drop in sales of its electric vehicles in the first three months of the year.
On Wednesday, Ford said its sales of electric vehicles grew 86 percent in the quarter, to 20,223 vehicles, but the total was below the level the company had previously expected to reach and came after its reduce some prices.
The company sold more than 7,700 F-150 Lightning pickups, its flagship electric model, in three months. As recently as last summer, Ford hoped to produce about 150,000 Lightnings trucks a year. The company recently reduced Lightning production to one shift per day from two.
Two years ago, Ford, GM, Volkswagen and other automakers planned to introduce dozens of new electric cars and trucks, hoping consumers would make a quick switch to electric vehicles. from gasoline powered vehicles.
But starting in the second half of 2023, the growth in electricity sales has significantly decreased, forcing manufacturers to scale back their ambitions. Ford and GM have also slowed work at factories that are supposed to supply battery packs for their new electric models.
