Ford delays $12 billion investment in electric vehicles to pay more attention to cost efficiency

CTOnews.com, Oct. 27 (Xinhua)-- Ford today announced the postponement of a $12 billion investment in electric vehicles, including a second battery plant in partnership with SK On.

John Lawler, Ford's chief financial officer, stressed at the earnings conference that the company would not withdraw from electric vehicles.

Lawler and CEO Jim Farley acknowledge that as electric vehicle sales increase, consumers' price elasticity decreases, and most consumers are unwilling to pay higher prices for electric vehicles, leading to pricing pressure. it will squeeze profit margins and hinder the growth of Ford's electric vehicle business.

Ford reported revenue of $1.8 billion in its electric vehicles division in the third quarter of 2023 and total sales of 48000 pure electric vehicles, the best in more than a year and a half. However, the company also reported record losses, highlighting the challenge of expanding production without making a profit.

To meet these challenges, Ford is shifting its electric vehicle strategy from function-centric development to giving priority to cost efficiency.

Under this cost-driven approach, Ford is reviewing its electric vehicle portfolio to better meet market demand. These include cutting production lines for some models, suspending a joint battery plant with SK On in Kentucky, and adjusting investment in other electric vehicles.