Ford has announced it will no longer produce a highly anticipated electric vehicle with the company now mulling over a new strategy.
The car maker confirmed it would kill plans to produce an all-electric SUV which would kickstart the acceleration of Ford’s journey to net zero.
However, as a result of “slower than expected” market interest in electric cars, the automaker has returned to the drawing board.
Reuters reported the change in plans for Ford, stating that instead of working on the electric SUV line, it would take a special “non-cash charge” of about $400million (£360million) or the write-down of certain assets.
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It is forecasted that the electric vehicle delay will cost the company billions
GETTYThe move is also expected to result in additional expenses and cash expenditures of up to $1.5 billion (£1.1billion).
Ford CEO Jim Farley has previously adjusted the company’s net zero targets after admitting that its 2030 deadline to be all-electric was "too ambitious".
The carmaker originally hoped to be net zero by mid-2026 and have 100 per cent of its passenger vehicle range in Europe be all-electric or at least plug-in hybrid.
Marin Gjaja, chief operating officer of Ford’s Model E electrification division, said at the time that the company would no longer aim to be all-electric by the end of the decade.
He added that due to “uncertainty" around driver demand for electric vehicles and changing UK legislation it impacted Ford’s ability to meet the 2030 deadline.
But confirming today, Farley said the company would look to adjust its new technology, waiting until 2027 to unveil a mid-size electric pickup.
Farley said in a statement: "The work of this highly talented team has evolved into a critical enabler of our electric vehicle strategy. These electric vehicles will be lower cost, and not compromised in any way."
Despite the change in plans, the automaker stated that it plans to continue to roll out an electric commercial van at its Ohio Assembly plant starting in 2026.
Farley added: "We learned a lot as the No.2 US electric vehicle brand about what customers want and value, and what it takes to match the best in the world with cost-efficient design, and we have built a plan that gives our customers maximum choice and plays to our strengths.
"We are committed to innovating, creating jobs and delivering incredible new electric and hybrid vehicles that make a real difference in CO2 reduction."
The company stated that due to electric vehicle consumers being more cost-conscious than early adopters, this has "amplified" pricing pressures.
"These dynamics underscore the necessity of a globally competitive cost structure while being selective about customer and product segments to ensure profitable growth and capital efficiency," Ford explained.
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Ford to delay plans until market volatility improves
FORDGB News has contacted Ford for a comment.
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