Ford has decided to cancel their plans for large electric SUV production. It is a significant step from the company and the broader electric vehicles (EV) market dynamics. This decision has been taken after the high electric SUV and lower demand in the EV market. The American Automaker company Ford has launched three SUVs in a row. But lower selling has changed the company’s future plan and approaches. Now, Ford has opted to focus on hybrid models and EV projects that promise greater profitability.
The main reason for the SUB price hike is its battery. The SUV e-car is powered by a large battery pack that increases the car price. These costs have made it challenging for automakers like Ford to achieve the same level of profitability that they enjoy with their traditional gas powered vehicles. By shifting their towards hybrid SUV, the company wants to make a balance between the growing demand for electric vehicles and the financial realities of large scale production. The company has seen a 35.5% growth in hybrid electric cars in 2024 first half.
The company has booked a $2.46 dollar loss of the first half of 2024. Although the company is working on electric truck which may launch in 2027. The truck will be manufactured in Tennessee and is expected to play a key role in Ford’s efforts to regain its footing in the EV market.
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After cancelling the large SUV electric project, the company is focusing more affordable and competitive electric vehicles. We know, the Chinese electric vehicles are known as cost effective electric car. So, Ford want to put pressure in the EV market. The company already allocated 30 percent of its annual capital spending on EVs.
In conclusion, Ford’s cancellation decision on large electric SUV plans and refocus on hybrid electric car is a pragmatic response to current market conditions. The company’s strategy highlights the challenges automakers face in balancing innovation with profitability in the rapid changing automotive industry.
