Even early adopters and those looking to reduce their CO2 emissions are dismayed by the 50 percent first-year depreciation of some electric vehicles.
Automakers are also feeling the pressure. In a press release, Ford said it would expand customer options as it “adapts its pure-electric vehicle rollout to deliver a profitable and capital-efficient EV business.” It also noted that Chinese automakers have “advantageous cost structures including vertical integration, low-cost engineering, advanced multi-energy battery technology and digital experiences.”
By slashing its three-row SUV and delaying the next generation of a pickup truck, Ford hopes to stem losses from its previously ambitious all-electric plan.
“It’s about understanding the customer, understanding how this will evolve over time,” Lawler said at this morning’s press conference. “It’s about giving them options that meet their duty cycles and their needs, and that’s giving them the choice between full battery electric vehicles and hybrid technologies.”
Future Fords must make money
Held hostage to fortune, Lawler said Ford would not launch any electric vehicles in the future unless it could be profitable within 12 months.
“We are launching multiple electric vehicles in Europe this year,” Ford said in a statement, referring to the EU-only EV launch. Ford Explorer EV and the Capri “We are adjusting the company’s vehicle roadmap in North America to offer a range of electrification options designed to accelerate customer adoption, including lower prices and longer ranges.”
Ford’s statement added that “the large number of new electric vehicle options coming to market over the next 12 months and increasing compliance requirements” were creating pressure on pricing. “This dynamic underscores the need for a globally competitive cost structure while being selective about customer and product segments to ensure profitable growth and capital efficiency,” the statement said.
Among cost-cutting measures, Ford is delaying its T3 midsize electric pickup truck, believed to be a more advanced successor to the F-150 Lightning, until the second half of 2027. It was supposed to go into production this year. The truck will be assembled at BlueOval City’s Tennessee Electric Vehicle Center. Ford also plans to introduce an all-new, all-electric commercial pickup truck that is scheduled to go into production in 2026 in Ohio.
Lawler said Ford has “a number of hybrid technologies in development” and is working on other powertrain options. “We will continue to offer gasoline vehicles and diesel vehicles, because there is demand for them and that will continue,” he confirmed.
“Our goal here is to transform Ford into a high-growth, higher-margin, more capital-efficient and durable company,” Lawler said.
Electric vehicles must be profitable, he stressed. “And if they are not profitable, based on the customer’s position in the market, we will make changes and adjustments and make tough decisions, and that is what we have done.”
Ford isn’t the only automaker in pivot mode. General Motors and Honda abandoned a plan Last year, GM decided to jointly develop low-cost electric vehicles, preferring to prioritize hybrids. VW of America also recently said that a “balanced approach is the best path.”