Ford is the latest automaker to slow its roll on EVs, after scrapping plans for a new electric SUV in favour of making a hybrid vehicle.
What happened: The company said it would only launch new EVs in the future if they can be profitable within 12 months, which is… easier said than done given the costs of electric batteries, competition from lower-price EV makers, and skepticism from mainstream buyers.
- Just last month, the automaker delayed plans to produce EVs at its plant in Oakville, Ontario, to focus on making its bestselling and gas-fed F-Series Super Duty trucks.
- Ford is also cutting its investments towards EVs to 30% from 40% of the company's capital budget and will delay the launch of a new electric pickup truck until 2027.
Why it matters: Customers who are weary about high prices and the lack of charging infrastructure have been buying up more hybrid models lately, which use batteries, electric motors, and gasoline engines, leaving automakers adjusting their plans to meet demand.
Big picture: One carmaker that has long rejected the industry’s aggressive push into EVs is Toyota, instead betting on a future that also relies on hybrids and other green vehicles. For now, governments and industry are counting on demand that’s yet to materialize.—SB