Ford’s electric division reported a $1.1 billion loss due to pricing pressures|Nuala|CC BY-NC-SA 2.0
Ford announced a change to its EV strategy yesterday. The company is shifting focus from its struggling electric segment to hybrid models.
The automaker also announced on Wednesday that it will cut annual capital expenditures for EVs from 40% to 30% and delay the production of a new electric pickup truck again to 2027.
The decision follows a $1.1 billion loss in its electric division and increasing competition from domestic and Chinese carmakers.
Ford is on track to lose $5.5 billion this year, pointing to “continued pricing pressure and investments in next-generation electric vehicles.”
Going hybrid
The EV business has proven to be expensive to the automaker. The company now plans to prioritize hybrid models and cancel the three-row SUV.
However, Ford will continue to sell EV models that it knows are in demand. It will launch an all-electric commercial van in 2026 and develop two more electric pickups and long-range SUVs.