Key Takeaways
- Ford has delayed the launch of a new three-row electric SUV at a plant in Canada because of soft demand.
- The EVs won’t be coming out of the the Oakville, Ontario, factory until 2027, instead of 2025, as previously planned.
- Ford lost $4.7 billion on EVs in 2023, and announced last year it was cutting back spending on them.
Ford Motor (F) announced Thursday it was delaying the launch of a new three-row electric SUV in order for the consumer market “to further develop.”
The company explained that it was “retiming” the release of the electric vehicles (EVs) to be manufactured at its Oakville, Ontario, factory to 2027 from 2025. The transformation of the plant from making internal combustion engine (ICE) vehicles to EVs is set to begin this quarter.
Chief Executive Officer (CEO) Jim Farley explained that Ford is “fully committed to manufacturing in Canada and believe this decision will help us build a profitably growing business for the long term.” However, he added that the automaker is “committed to scaling a profitable EV business, using capital wisely and bringing to market the right gas, hybrid and fully electric vehicles at the right time.”
The news came just a day after Ford reported big demand for its hybrids in the first quarter, and Thursday the company noted that it would be “expanding its hybrid electric vehicle offerings.” While EV sales were also strong, Ford has been bleeding cash building them. The carmaker’s EV losses in 2023 totaled $4.7 billion, and in October CFO John Lawler told analysts Ford was postponing some $12 billion in planned EV spending, including holding off on constructing a manufacturing site in Kentucky.
Shares of Ford Motor were flat as of 1:30 p.m. ET after rising earlier in the session. They have gained more than 12% in 2024.