Ford, like different automakers, have gone all in on EVs to the tune of billions of {dollars}. That gamble hasn’t fairly performed out like Ford anticipated it to nonetheless. EVs gross sales have slowed and inventories of as soon as widespread fashions just like the Mustang Mach-E and F-150 Lightning have brought about the automaker to slash costs and provide reductions to entice consumers.
Reality has set in on the automaker. So a lot in order that the Verge is reporting that Ford is halting its growth of its $12 billion EV facility in Kentucky. The plant would have made batteries for future EV fashions. While this facility gained’t be transferring ahead proper now, Ford says this doesn’t have an effect on its Blue Oval City facility in Tennessee or any of its deliberate subsequent gen EVs.
Overall although issues haven’t regarded good for Ford these days. The firm’s newest monetary releases present $1.3 billion misplaced this final quarter. Another $3.1 billion has been misplaced up to now this yr with the corporate anticipating to lose a complete of $4 billion in 2023. And it’s not simply Ford on this boat both, from the Verge:
Ford’s not alone in all this, after all. General Motors is pushing again manufacturing of its new slate of electrical vehicles and SUVs. Tesla CEO Elon Musk spent a big chunk of his final earnings name moaning about rates of interest.
Customers would in all probability agree. Most of the early adopters have, nicely, adopted, and the following tier of potential prospects has sufficient sticker shock to maintain their wallets closed. Ford has tried to handle this with new releases just like the F-150 Lightning Flash, a mid-priced trim of its electrical truck. The firm says that the purchasers will determine what number of EVs it makes — and proper now, meaning tapping the brakes on huge tasks.
While it appears to be like dangerous for some automakers, it’s a win for purchasers as EV costs are coming down. With reductions, worth cuts and a looming level of sale tax credit score change beginning in 2024, possibly EV gross sales will choose up once more sufficient for these automakers fortunes to show round.
Source: jalopnik.com