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Ford Postpones Launch of Major Electric SUV and Pickup Amid EV Market Challenges

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Ticker Tea
April 05, 2024

📝 SUMMARY: In a strategic pivot reflecting the evolving landscape of the electric vehicle (EV) market, Ford Motor Co. ($F) has announced a postponement in the launch of its anticipated electric three-row SUV until 2027, a two-year delay from its initial 2025 target. This decision also affects the electric F-Series pickup, now rescheduled for 2026. These moves come as Ford assesses the current pace of EV market development, grappling with consumer hesitance due to high vehicle prices and a nascent charging network.

Ford's recalibration of its EV rollout plan is part of a broader response to a softening demand in the US EV sector. The automaker is navigating this slowdown by extending its commitment to hybrid technology, promising hybrid variants of all its models by the end of the decade. This approach has already shown promise, with Ford reporting a 42% surge in hybrid sales in the first quarter, contributing to an overall 7% increase in sales.

The delay impacts 2,700 workers in Oakville, Ontario, originally set to commence production of the electric SUV in 2025. In light of the postponement, Ford is coordinating with Unifor, the union representing these employees, to mitigate the layoff's effects, including extending up to 70% pay benefits.

Meanwhile, Ford's push towards more accessible EVs continues, with plans to introduce three budget-friendly, battery-powered models starting at $25,000 by late 2026. CEO Jim Farley emphasized the shift towards smaller EV platforms as a strategic response to consumer feedback, which suggests a preference for functional or work-related EVs over larger models.

As Ford navigates the complexities of the EV market, its commitment to a "profitable EV business" involves a prudent allocation of capital towards gas, hybrid, and fully electric vehicles that align with market readiness and consumer demand.

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