With losses piling up, Ford is reducing again on EV battery orders. In keeping with sources, the transfer comes as Ford’s EV losses pile up, topping over $100,000 per electrical automotive constructed within the first quarter.
After saying plans to delay round $12 billion in EV spending final yr, Ford has continued to push again EV initiatives, citing slower-than-expected market demand.
After reducing F-150 Lightning manufacturing once more earlier this yr (for the second time in lower than 5 months), Ford trimmed the workforce at its Rouge EV plant, the place the electrical truck is constructed.
Ford revealed the plans in January, claiming EV demand was slowing. In keeping with Ford spokesperson Jessica Enoch (by way of The Detroit Free Press), one-third of the two,100 staff remained on the plant beginning April 1, 2024.
In the meantime, 700 staff have been transferred to its Michigan Meeting plant, whereas the opposite 700 have been provided a $50,000 retirement package deal or reassignment to the MI facility.
The transfer didn’t lead to job losses. As a substitute, staff have been provided reassignments or retirement. Now, it seems like Ford is throttling again on extra EV plans.
Ford cuts battery orders as losses prime 100K per EV
In keeping with folks with information of the matter, Ford is reducing battery orders from suppliers with rising EV losses.
The transfer comes after Ford slashed costs, creating even bigger EV losses. In a brand new Bloomberg report, one supply stated Ford misplaced over $100,000 for each EV constructed within the first quarter—greater than double the quantity misplaced a yr in the past.
Regardless of reducing orders, Ford is sustaining partnerships with its battery suppliers together with SK, LG Vitality Answer, and CATL.
CATL stated its “cooperation with Ford is shifting ahead as regular,” whereas SK and LG stated their contracts with Ford stay. In the meantime, a Ford spokesperson stated the corporate doesn’t usually touch upon provider relationships.
Ford initiatives Mannequin e losses to achieve $5.5 billion this yr after a $1.3 billion EBIT loss in Q1. Though Ford expects EV prices to enhance, the corporate expects this might be offset by top-line stress.
Electrek’s Take
If the report is correct, this could possibly be the newest setback in Ford’s EV plans. The automaker is already pushing again round $12 billion in EV spending, slashing costs, and delaying new mannequin launches.
Ford is shifting to smaller, extra worthwhile EVs with plans to delay its three-row electrical SUV within the US.
Though Ford is bettering EV prices, it’s additionally reducing costs to maintain tempo with Tesla and others like Hyundai, which have launched vital value cuts.
A separate Bloomberg report famous that Ford is accelerating the event of smaller electrical autos, that are anticipated to debut in 2026. The primary fashions are anticipated to be a smaller electrical truck and SUV with a beginning value of round $25,000.
Within the meantime, Ford is following Toyota and different legacy automakers with plans to introduce extra hybrids as a bridge to its next-gen EVs.
