Ford turns its back on electrics
The reason for the change in strategy is the cost. Ford says today’s electric vehicle buyers are looking for a car that will help them save money. In addition, by moving some of the Mustang Mach-E’s battery production from Poland to Holland, Michigan, the company will be eligible for a tax break. “An affordable electric vehicle starts with an affordable battery,” said company president Jim Farley. “If you’re not competitive on battery cost, you’re not competitive.”
Ford said in a statement that the global electric vehicle market is changing rapidly and the company must evolve to compete with Chinese manufacturers with lower production and design costs. At the same time, existing buyers are more cost-conscious than early adopters, and automakers are introducing more electric car models to the market.
“These dynamics underscore the need for a globally competitive cost structure while being selective in our approach to customer and product segments to deliver profitable growth and capital efficiency,” the company said. Electric vehicle production resulted in a loss of $2.46 billion in the first half of the year, weighing on Ford’s profits from other manufacturing businesses.
What electric cars will Ford introduce to the market?
Among all-electric models, Ford is prioritizing a new van in 2026, followed by two new pickups in 2027. The company says commercial customers are ready to switch to electric vehicles sooner because in this market segment, buyers are looking at the total cost of ownership and use of the vehicle. Ford says its van and pickups will be cheaper, have a longer range and will achieve positive EBIT (earnings before interest and taxes) within a year of launch, AP reported.
Ford says it will produce battery cells for the E-Transit and F-150 Lightning at Kentucky Plant 1, and cells for an electric delivery van in BlueOval City, Tennessee. “These same cells will be sourced to later power the next-generation electric truck, which will be assembled in BlueOval City, and future electrified vehicles,” the company said in a statement. “This strategy will give Ford significant flexibility in supplying across multiple segments (…) as the market continues to evolve.” (PAP)
