Ford Motor Company recently announced it would be converting the production capabilities of one of its Canadian plants, intended to produce electric SUVs, to focus on manufacturing gasoline-powered pickup trucks. While Ford had initially planned to drastically increase the production of electric vehicles (EVs) in the coming years, the forecasts have not aligned with consumer interests.
The Detroit-based auto company had initially planned for the Oakville, Ontario plant to make electric versions of the flagship Ford Explorer and Lincoln Aviator. However, the location will revert to producing the F-series Super Duty pickup trucks, which are in high demand, unlike their battery-powered counterparts. As demonstrated by the pullback at Ford, consumer interest in EVs has waned in recent years.
As many car manufacturers have discovered, the initial post-pandemic growth of the EV market was short-lived. “After the pandemic, there was a huge exuberance around EVs, and I think a lot of the manufacturers thought that growth was going to continue,” Arun Kumar, a partner and managing director at the consulting firm AlixPartners, told the New York Times. “But the reality is that’s not the case, and it’s a smart move to make sure you’re not losing market share in internal combustion,” he added.
Earlier this year, The American Tribune reported on Ford’s EV woes, as reports showed the company had endured a substantial loss on every fully electric car sold during the first quarter of the year. According to a Ford earnings report for Q1, the automotive giant was losing approximately $132,000 per electric vehicle during the period.
Moreover, Ford also phased out roughly 1,400 workers at an F-150 Lightning plant, the company’s flagship fully electric truck, amid a slowdown in demand for the vehicle. “Ford is reducing production of F-150 Lightning, the top-selling electric pickup in the U.S., to achieve the optimal balance of production, sales growth and profitability. Ford expects continued growth in global EV sales in 2024, though less than anticipated, and is preparing to launch next-generation EVs,” per an official statement from Ford.
However, recent remarks from Ford leadership indicate that the company remains committed to its long-term goals for the electrification of its vehicle lineup. Ford President and CEO Jim Farley stated, “We are taking advantage of our manufacturing flexibility to offer customers choices while balancing our growth and profitability. Customers love the F-150 Lightning, America’s best-selling EV pickup. We see a bright future for electric vehicles for specific consumers, especially with our upcoming digitally advanced EVs and access to Tesla’s charging network beginning this quarter.”
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