Ford delays next-gen EV offerings as it pushes further into hybrids
Ford (F) is dialing back its next-generation EV rollout, trying to better time the market as it spreads out its capital investments. Meanwhile, the Dearborn, Mich.-based automaker will expand its popular hybrid offerings.
Ford said today it is pushing back EV production at its massive BlueOval City EV campus in Tennessee to 2026 from its initial 2025 start date. Ford said installation of equipment is underway at BlueOval City, where the company intends to build its next-generation electric truck, most likely its Project T3 full-size EV pickup that will replace the current F-150 Lightning.
Ford also revealed it is “retiming” the launch of upcoming EVs at its plant in Oakville, Ontario, where it plans to build next-generation three-row EVs, most likely a full-size SUV. The company is aiming to launch those vehicles in 2027, pushing back the original 2025 timeline. Ford also said construction at its BlueOval SK JV battery plants in Tennessee and Kentucky is “progressing,” as well as at its BlueOval Battery Park in Michigan, construction of which had also been delayed last year.
Finally, Ford said its Ohio assembly plant would build a new commercial EV, with tooling installation set to begin in spring 2025.
“As the No. 2 EV brand in the US for the past two years, 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,” Ford CEO Jim Farley said in a statement.
Ford’s hybrid sales have been booming, with sales hitting a record in Q1. Ford said it will expand its EV offerings, with hybrid powertrains now expected across its entire product range by 2030.
With hybrid sales surging and EV sales requiring big incentives at the dealer level, Ford’s decision to push back EV launches at these facilities was not unexpected. The company also said late last year that it would "push out" $12 billion in EV investments for when that capacity is needed.
“These [new EV] initiatives support the development of a differentiated and profitably growing EV business over time while Ford serves customers with the right mix of gas, hybrid and electric vehicles based on demand today,” the company said.
While Ford revamps its EV plans and pushes out investments, EV spending for the year will still be massive. For 2024, Ford is projecting the Model e EV unit to record an EBIT loss of $5 billion to $5.5 billion — indicating wider losses in the business unit compared to 2023.
Pras Subramanian is a reporter for Yahoo Finance. You can follow him on Twitter and on Instagram.
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