According to recent data, U.S. electric vehicle sales have slowed down from their meteoric rise over the past several years. Subsequently, Ford Motor Company, an auto manufacturer that has championed its EV lineup, will be delaying the release of its newest electric SUV.
To better accommodate consumer demand, Ford will prioritize hybrid vehicles with gas and electric capabilities. Based on recent reports, the company’s EV pickup truck will be delayed a year until 2026, while the highly anticipated all-electric SUV will have its production delayed until 2027.
Analysis of the EV market shows that the pullback in EV interest shows that U.S. electric vehicle sales growth slowed to 2.7 percent in the first quarter of the year, far short of the 47 percent increase that fueled record-breaking sales and nearly 8 percent market share last year. Overall, the sale of new vehicles increased roughly 5 percent, whereas the EV market share fell to just above 7 percent.
Simultaneously, hybrid vehicles have exploded in popularity in the first quarter of 2024. Many consumers prefer these cars as they offer a combination of the benefits found in the internal combustion engine as well as battery-powered engines. For example, drivers could rely on the electric battery for short daily commutes and utilize the gas-powered engine for longer road trips.
For noted that it anticipates offering more hybrid versions of its gasoline-powered engines by the end of the decade. Auto industry experts have pointed out that the early adopters of the electric technology have already bought into the trend, leaving EV makers fighting to convince skeptics who remain committed to gas-powered vehicles.
Ford has forecasted its pretax losses for its electric vehicle lineup to worsen from $4.7 billion last year to anywhere between $5 billion and $5.5 billion this year. However, the company predicts commercial vehicles making $8 billion to $9 billion, an increase from $7.2 billion last year. Gasoline-powered cars and hybrids are anticipated to earn $7 billion to $7.5 billion, roughly flat year-over-year.
The American Tribune has consistently covered the EV woes the auto industry has endured in recent months. For example, Ford announced it would be phasing out roughly 1,400 workers at an F-150 Lightning plant producing the flagship electric pickup. The scale-back in production follows lackluster sales trends for the electric 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,” according to an official statement from Ford earlier this year.
However, the Michigan-based automaker remains committed to its long-term vision for its electric vehicle unit, citing new technological capabilities the company intends to roll out. Ford wants to play on its “manufacturing” flexibility to better adjust to consumer trends.
“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,” explained Ford President and CEO Jim Farley. “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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