Ford Motor delays production of two electric vehicles, shifts focus to hybrid models
Ford’s CEO, Jim Farley, emphasizes company’s goal of using capital wisely and bringing right mix of gas, hybrid, and fully electric vehicles to market at the right time
In response to slowing sales of electric vehicles among major automakers, Ford Motor has announced a shift in strategy. The company has delayed production of two new electric vehicles and will instead focus on producing more hybrid models.
This move comes amid challenges faced by automotive companies in manufacturing, selling, and profiting from electric vehicles. Following suit with other industry giants like General Motors and Mercedes-Benz, Ford Motor has scaled back its electric vehicle plans.
According to reports by The New York Times, Ford Motor has announced its withdrawal from electric vehicle production. Initially, electric vehicles garnered interest from enthusiasts despite their high cost, but over time, demand for such vehicles has waned due to their expensive nature.
Sam Abuelsamid, Principal Analyst of Transportation and Mobility at research firm Guidehouse Insights, commented on the situation, stating, “Many companies rushed into electric vehicles, which were very expensive, but the market for these vehicles was not as large as they anticipated. This has made selling electric vehicles increasingly challenging.”
Ford’s CEO, Jim Farley, emphasized the company’s goal of using capital wisely and bringing the right mix of gas, hybrid, and fully electric vehicles to market at the right time. Concerns among consumers about the availability of sufficient public charging stations when they need to charge their vehicles or travel long distances have contributed to their reluctance to purchase electric models.
The prominence of electric vehicles in American politics was highlighted during the presidential elections, as President Biden placed them at the center of his climate change strategy, igniting partisan debates in American politics.
The slowdown in sales also affects Tesla, the leading electric model manufacturer in the United States. Tesla reported an unexpected 8.5% decline in electric vehicle sales in the first three months of the year, indicating the broader challenges facing the electric vehicle market.
Source: Newsroom
