Ford’s ambitious electric vehicle (EV) plans hit yet another speed bump as the automotive giant announces further delays in its EV lineup. The US automaker is pushing back its new all-electric pickup truck and a three-row SUV. This decision comes as a surprise as Ford’s EV sales have soared by 86% year-over-year.
What’s Happening & Why This Matters
Ford’s declaration raised eyebrows through the automotive industry. The electric F-150’s sales have surged, up 80% from last year, which indicates a growing adoption for EVs. Despite this, Ford’s overall strategy seems to be shifting towards hybrids. The company plans to expand its hybrid offerings significantly, despite hybrids constituting just 7.6% of Ford’s total sales in the first quarter of 2024. This pivot raises eyebrows, especially when considering Ford’s EV division is poised to incur losses of up to $5.5 billion in 2024. The new strategy will introduce hybrid variants for all its combustion engine models by 2030.
The U.S. EV market is in a curious state. While Ford and other manufacturers like Rivian, Kia, and Hyundai are experiencing substantial growth in EV sales, the overall market growth is tepid compared to total car sales. This inconsistency underscores the challenges and opportunities within the EV sector. Tesla, the behemoth of EVs, has notably faced an 8.5% decline in deliveries and overproduction issues.
TF Summary: What’s Next
Ford’s decision to delay its EV models again is an unexpected approach towards a fully electric future. While the company doubles down on hybrids, its booming EV sales suggest a marketplace ready to embrace electric mobility. Ford’s strategy is a balancing act between current market trends and long-term sustainability goals. As the automotive industry’s future takes shape, the trajectory of EV adoption and the role hybrids will play in the transition to greener transportation remain critical areas to watch.