Ford Abandons Large Electric Vehicles, Shifts Focus to Extended Range Electric Trucks
However, the electric vehicle market has been facing significant challenges since the F-150 Lightning was first introduced. In fact, Tesla’s price war has been eating into the margins of legacy automakers.
Company-Wide Shakeup: Ford to Take $19.5 Billion Hit
Meanwhile, Ford will take a substantial $19.5 billion hit to reshape its EV business strategy. Most of those charges, including an $8.5 billion writedown of its EV assets, will be recorded in the fourth quarter.
Extended Range Electric Vehicles: The New Focus
Consequently, Ford will sell what’s known as an “extended range electric vehicle” version of the truck, which adds a gas generator that can recharge the battery pack to power the motors for over 700 miles.
New F-150 Lightning: No Release Date Yet
However, the company did not share when the new F-150 Lightning will go on sale, or how much it will cost. The pivot will come with a substantial price tag for Ford.
Impact on Workers and Factories
Moreover, the shakeup affects numerous factories and workers. It also means Ford’s next-generation all-electric truck — internally dubbed “T3” — is now dead.
Future Plans: Mid-Sized All-Electric Pickup Truck
In addition, the company is still planning on releasing a mid-sized all-electric pickup truck in 2027. The platform that powers that truck will also underpin other future Ford vehicles.
Andrew Frick’s Statement
Therefore, Ford president Andrew Frick said, “Rather than spending billions more on large EVs that now have no path to profitability, we are allocating that money into higher-returning areas, more trucks and van hybrids, extended-range electric vehicles, affordable EVs, and entirely new opportunities like energy storage.”
Background: F-150 Lightning’s Struggles
Like most large electric trucks, though, the F-150 Lightning struggled in the U.S. market. Part of that was because the $40,000 price tag never materialized for most buyers, as that base trim was targeted specifically at fleet customers.
Conclusion
Meanwhile, the electric vehicle market continues to evolve, with challenges and opportunities arising daily. Ford’s pivot away from large electric vehicles is a significant shift in the industry.
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