Even an electric version of the world's best-selling truck couldn’t get people to give up the gas pump.
Driving the news: Ford is abandoning the electric model of its wildly popular F-150 truck as part of a larger pivot away from its money-losing EVs. The automaker will take a US$19.5 billion hit this quarter — mainly from its EV division — which is more than the company’s operating income for the past three years combined.
Why it’s happening: Demand for EVs in North America has ground to a halt. Prices are still higher than gas-powered cars, charging infrastructure has been patchy (putting the onus on drivers to install and pay for home chargers), while government EV credits in Canada, the U.S., and even Europe seem to be flip-flopping with every election cycle.
Why it matters: With automakers like Ford, GM, and Stellantis punting on their EV investments, there’s growing concern that Ottawa may have also jumped the gun with the money it poured into the sector. About $32 billion of Canada’s $46 billion of investments in major EV projects were either stalled or in serious jeopardy as of late May.
Zoom out: China already makes 70% of the world's electric cars. As upstarts like BYD continue to expand into new markets (and automakers like Ford pull back), it feels more and more likely that the future of the EV industry will run through China. Where that will leave the North American auto industry is an open question.—LA