Ford Motor Co. announced on Thursday a delay in the production of at least two new electric cars, opting instead to focus more on hybrids. This decision reflects a broader trend among major automakers, including General Motors and Mercedes-Benz, who have also adjusted their electric vehicle strategies due to slowing sales.
The shift away from electric cars is driven by challenges in manufacturing and selling them profitably. While sales of electric vehicles continue to grow, the pace has slowed significantly as automakers struggle to appeal to a broader market beyond early adopters willing to pay premium prices. The cost of production remains high, hindering the introduction of more affordable electric models.
Consumer reluctance to adopt electric vehicles is also a factor, with concerns about charging infrastructure availability and range anxiety. Many consumers are turning to hybrid cars, which offer similar performance to gasoline-only models at a slightly higher cost but with better fuel efficiency and without the need for charging infrastructure.
Ford aims to offer hybrid versions of all its models by the end of the decade, with plans to produce a large electric SUV in Ontario by 2027 and an electric pickup truck in Tennessee by 2026, both delayed from their original timelines. Additionally, Ford is investing in research and development in California to produce components for lower-cost electric vehicles.
While Ford reported an 86% increase in electric vehicle sales in the quarter, the numbers fell short of their earlier expectations, indicating the challenges in scaling up electric vehicle production.
