Ford delays electric vehicle goal, acknowledges slower transition than anticipated by industry.
Ford Pushes Back Electric Vehicle Target, Admits Transition Will Be ‘Slower Than the Industry Expected’
Ford Motor Co. announced on Thursday that it is adjusting its production target for electric vehicles (EVs), despite the Biden administration’s substantial subsidies to the EV industry.
The automaker now expects to produce 600,000 EVs per year by the end of 2024, a delay from its previous goal of reaching that rate by the end of 2023, according to CNBC.
Furthermore, Ford has pushed back its estimate of reaching a production rate of 2 million EVs per year to 2026.
Ford, along with other automakers, has received significant subsidies from the Biden administration to produce electric vehicles through policies such as the Inflation Reduction Act. This act includes tax credits for EVs and credits for battery production.
“The transition to EVs is happening, it just may take a little longer,” stated Ford CFO John Lawler following the second-quarter earnings results, as reported by CNBC.
Lawler added, “It will be a little slower than the industry expected.”
This change in goals from Ford comes after the company reduced prices by up to $10,000 for the electric version of its popular F-150 pickup truck to qualify for the Biden administration’s $75,000 consumer tax credit, which only applies to vehicles under $80,000.
Additionally, the number of unsold Ford battery-powered trucks and cars in stock has reached 90,000 this year, double the industry average for cars held in stock.
Ford $F out with earnings
Interesting results in its electric vehicle business
Expects to lose $4.5 billion on its EV line this year
That’s 2x the $2.1 billion it lost on EVs last year
EV sales FELL 2.8% over the past year
Abandons plans to make 2 million EVs/year by 2026… pic.twitter.com/HEhsp2EGru
— Stephen McBride (@DisruptionHedge) July 28, 2023
“The near-term pace of EV adoption will be a little slower than expected, which is going to benefit early movers like Ford,” stated Ford CEO Jim Farley in a CNBC statement. “While others are trying to catch up, we have clean-sheet, next-generation products in advanced development that will blow people away.”
Ford anticipates an operating loss of $4.5 billion this year on its electric Model e, having already reported a loss of $1.8 billion for the second quarter on the product.
The division, called “Ford Model e,” has already shed about $1.8 billion in 2023 so far. https://t.co/YuhbkpXPCl
— FORTUNE (@FortuneMagazine) July 28, 2023
On June 22, Ford and its South Korean business partner, SK On, secured a $9.2 billion loan from the Biden administration to construct three electric vehicle factories in the southern U.S.
Less than a week later, Ford announced the layoff of at least 1,000 North American employees.
Ford has not yet responded to a request for comment from the Daily Caller News Foundation.
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