Automotive News: Ford losing $44,000 on every EV it sells

Ford bought into the democrat Green New Scam and as a result, is losing $44,000 on every Electric Vehicle (EV) it sells). Ditto for GM and all other EV manufacturers.

All of this means more hybrids are coming to Ford’s lineup. From the Wall Street Journal:

Ford instead will offer hybrid gas-electric versions of future large, three-row SUVs, a popular vehicle category that includes the brand’s Explorer and Expedition nameplates.

The company’s moves are the latest example of automakers unwinding EV-investment plans they made years ago, when it looked like there was big untapped consumer demand for battery-powered models. There has been more hesitancy among car shoppers than auto executives initially expected, with surveys showing concerns about high prices and finding places to charge.

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Ford also pushed back the launch of a new electric pickup truck by one year, until 2027, the second time it has pushed back the timeline. In addition, Ford said it would trim its capital spending on fully electric vehicles to about 30% of its budget, from 40%.

“Based on where the market is and where the customer is, we will pivot and adjust and make those tough decisions,” Ford Chief Financial Officer John Lawler said.

Ford said its EV business is on track to lose an eye-watering $5 billion this year alone. In the three-month period ending in June, the automaker lost about $44,000 on every electric vehicle it sold. That is not sustainable.

Executives have said the company is trying to reduce the losses on its current EV lineup while making sure future offerings turn a profit.

Carmakers are trying to strike a tricky balance on electric vehicles. Tougher tailpipe-emissions rules, along with the rapid rise of Chinese EV makers, are pressuring them to invest in the technology. But consumer interest in EVs has waned after a burst of enthusiasm.

For example, while Ford is recalibrating its plans to include more hybrids, it also is moving ahead with the rollout of several full EVs. It will start making an electric commercial van in 2026 and two new pickup trucks a year later – they will lose their shirt on those as well.

One of the trucks will be a midsize pickup, built using a new, lower-cost EV system that has been under development for nearly two years by a team of about 100 Ford engineers in Irvine, Calif. Led by former Tesla executive Alan Clarke, that project is designed to produce several electric models that Ford says will be profitable and allow the company to compete with Chinese EV makers. [Good luck with that].

“We believe that the fitness of the Chinese in EVs will eventually wash over our entire industry in all regions,” Farley told analysts last month.

Ford obviously isn’t alone in this move to pull back on EV plans because of lower-than-expected demand. General Motors has acted similarly after swallowing the Green New Scam whole.