Ford writes off $1.9bn as it cancels plans for all-electric large SUV in US
Ford writes off $1.9bn as it cancels plans for all-electric large SUV in US
Carmaker opts to produce hybrid version due to profitability concerns, citing pressure from Chinese EV competition
Ford has written off $1.9bn as it cancelled plans for an all-electric large SUV in the US, opting to produce a hybrid version instead in the latest sign of western carmakers struggling to make profitable electric cars.
The US carmaker said on Wednesday that it would not be able to reach a profit on the electric SUV within a year, its measure of whether a new car is viable, citing the stiff competition from Chinese manufacturers. It will initially write off the cost of $400m (£300m) in tooling for the vehicle, plus another $1.5bn (£1.15bn) in extra costs in the future.
Ford also said it would delay the successor to its F-150 Lightning electric pickup truck until 2027, after initially targeting a launch next year.
The Ford boss, Jim Farley, said the decision to produce fewer electric cars in favour of hybrids “gives our customers maximum choice and plays to our strengths”.
how does producing fewer options result in more choice, let alone "maximum" choice?
i feel like corporations are just throwing around "customer choice" as a justification for literally everything they do, regardless of how much "choice" is actually involved--same bullshit as tax-funded vouchers for private jesus schools
short term profit that will result in long term market loss.
They are maximising choice by creating a new lowest rung on the ladder of choices. Now you can buy something good, or buy a Ford!
Same as always.
We will produce only one of this item, giving our customers infinite choices, which again means unlimited profits!
They are the customer of future “too big to fail” government bailouts, and they are choosing to get more free money.
socialize losses, privatize profit
I swear I lmao when I first heard they were getting rid of so many cars. It was so obvious they were cutting their own throat.
Isn't Ford the company that got its start by telling customers that they could get their model t in any color they want, as long as it's black?
Perhaps this is simply part of Ford's DNA and they don't know how to make it stop?
You know what blows my mind? Ford actually made an inexpensive small truck, and they couldn't keep them in stock. It flew off the shelves so fast pre-orders were taking almost a year to produce.
They turn around and then make an almost 6 figure electric version of the f150, then wonder why they didn't sell.
Make an affordable electric vehicle, and you won't have a single problem selling them. It's not this fucking hard! Imagining how far the oil industry is up the asses of car manufacturers is a real scary thought.
They turn around and then make an almost 6 figure electric version of the f150, then wonder why they didn’t sell.
I remember when they first revealed the price as around $40k. At that price, there was a lot of demand. I don't know if they underestimated expenses or they got greedy with the covid pump in prices, but it's obvious that price is one of the biggest factors affecting demand. Ultimately, EVs should be cheaper to produce than internal combustion vehicles because there are far fewer parts involved.
Higher profit margin. They'd rather sell 1 truck at a $50,000 profit than 50,000 trucks with a $2000/ea profit.
Maybe stop making giant, fucking monstrosities of vehicles and focus on humanely-sized ones. I'd love to buy a Ford EV (my Fusion Hybrid has been a dream), but I do not want some grotesquely oversized monster truck or SUV (or their butt ugly crossover designs).
Every time I see one of those ridiculous bus-sized SUVs, I think of that scene from Borat where he asks the lady about it, she says it's so her baby has room, and he's like "must be huge baby!"
Time for this image again:
SoDo you have the plug in version of the fusion or the regular hybrid? The 20mi electric only range isn't great, but the extra oomph on the electric motor is really nice in the city.Regular. I kick myself every day for not buying the Energi (the plug-in version). At the time, I didn't have anywhere to charge it. A year later, I bought a house where I could charge it easily.
The 20 mile range would cover all of my daily driving (though it's advertised as closer to 30 or 35 i thought)
Unfortunately, you aren't the US car market. Oversized trucks and cross-over SUVs sell. The top 3 vehicles in 2023 were:
- Ford F-150
- Chevy Silverado
- Dodge Ram
The rest of the list is littered with trucks and cross-over SUVs. Though a couple Tesla vehicles make the list and do quite respectably (The Model Y is at #5). It's no surprise that US manufacturers are targeting large vehicles. That's what US consumers want. And sure, there are lots of arguments to be made against land-yachts. But, it made sense that Ford targeted large vehicles for EV sales. If they can get people to accept the F-150 Lightning, that could really move the needle on EV sales and help them scale up. Expecting customers to both buy-in to a newer technology and make radical changes in their buying habits, is a recipe for failure. Though, it also seems that Ford is managing to fail despite chasing consumer trends.
"My arm cannot reach the high shelf, so I will cut it off."
If they can't produce EVs profitably, Tesla and BYD will. They're destroying their future in the name of short term profits.
Tesla can barely produce a functional vehicle...
How do you get through a billion dollars before realising the product is not viable?
Easy.
Announce new models to rule the world
Pat self on back and give bonuses to all executives
Cancel project
Pat self on back for saving billions more and give even more bonuses to executives for being amazing.
Oh no, no profit within a year. That’s like forever in corporate land.
Somebody will need to be held accountable.
That’s ridiculous. The Ioniq 5 is a hit seller and just got picked as Car and Driver car of the year, so there’s definitely demand for an SUV EV.
Ford has written off $1.9bn as it cancelled plans for simpler version in the US, opting to produce a version with both an ICE and batteries instead
It makes no sense
Same company that decided to stop making cars and only make trucks a few years ago. Their leadership has no idea how to do anything except sell oversized gas guzzlers to morons.
Guess I won't be buying a Ford. If they won't produce the cars I want I have to go elsewhere. Keeping my 1999 on the road is getting expensive, but I see no other option. (though my ebike covers about 90% of my needs, that last 10% isn't much so cheap is important)
Yeah so if you drive a 99 I'm pretty sure it's not an issue with the cars manufacturers are producing right now.
Well it is 25 xears old an has many age related issues. It could ose a replacemenc but the options are lacking so I'm rapairing it
That's okay, car companies like Honda and Subaru already have one. Nobody needs a Ford.
Fuck Ford.
citing the stiff competition from Chinese manufacturers.
Sounds like a sore loser answer haha
Did someone say stock buybacks?
Currently large electric vehicles make 0 sense
Make all passenger cars electric and work trucks ICE till the battery tech becomes suitable. Require licence to buy/drive big fuck you trucks and fine anyone who isn't using one for work.
Car and Driver picked the Ioniq 5 N as car of the year. It’s an SUV EV with 624hp. The non-N model is a hit seller.
I'm just here to point out that a Ford Ranger today looks bigger than a F150 did a decade ago.
I busted someone from a Ford distributor here in Australia talking shit on a Hyundai Facebook ad about EVs.
They're likely doing poorly because of the culture they've developed in their dealership network too
Unlike brands like Tesla, they're also not going all-in . They should start manufacturing batteries and other components for other applications
Good news, in my opinion, Lucid is beginning to produce all electric SUVs later this year. Im sure the price point would have been comparable to fords anyway. I do have hopes Lucid makes it in the market.
Oh boy, more SUVs. Just what we needed, more of the same.
"Struggling" huh?
Good news, in my opinion, Lucid is beginning to produce all electric SUVs later this year. Im sure the price point would have been comparable to fords anyway. I do have hopes Lucid makes it in the market.