NEW YORK, Aug. 21 (Xinhua) -- Ford Motor said on Wednesday that it would delay the introduction of a new large electric pickup truck by about 18 months, to 2027, and scrap a three-row electric sport-utility vehicle.
It indicates the company is again slowing the pace of its investments and new battery-powered models though it had once hoped to race ahead of other established automakers in electric vehicles.
Ford is also reducing the amount of money it plans to spend on electric vehicles in an effort to stem multibillion-dollar losses on the technology, while adding plans to introduce a new electric delivery van in 2026. A new medium-sized electric pickup is expected in 2027 as well, the company said.
"The competitive nature of the market is changing globally," Ford's chief financial officer, John Lawler, said in a conference call. "That means these vehicles need to be profitable, and if not, we will pivot and adjust and make those tough decisions."
Lawler said investments in electric vehicles would now account for about 30 percent of the company's capital budget, down from 40 percent.
"Ford's shift comes as the rate of growth in electric vehicle sales has slowed significantly in the United States and Europe, prompting Tesla and other automakers to cut prices," said The New York Times in its report about the move. Last month, Ford reported that its electric vehicle division had lost 2.5 billion U.S. dollars in the first half of the year before certain expenses were taken into account.
"The announcement underscores the challenges facing U.S. automakers as they seek to boost sales of EVs, a crucial technology in the fight against climate change, despite flagging consumer demand, supply chain challenges and increased competition with Chinese carmakers," noted The Washington Post in its relevant report.
"Carmakers are trying to strike a tricky balance on electric vehicles. Tougher tailpipe-emissions rules, along with the rapid rise of Chinese EV makers, are pressuring them to invest in the technology. But consumer interest in EVs has waned after a burst of enthusiasm," said The Wall Street Journal on this topic.
