(Telestock) – Ford Motora major US car manufacturer, is reviewing the strategy for its electric vehicle linea change that could cost up to $1.9 billion.
The plan includes adjusting the company’s North American vehicle roadmap to offer a range of electrification options designed to accelerate customer adoption, including lower prices and greater autonomy. In its all-electric portfolio, Ford will prioritize the introduction of a new digitally advanced commercial van in 2026, followed by two new advanced pickups in 2027 and other affordable vehicles in the future. Ford has also realigned its U.S. battery procurement plan to reduce costs, maximize capacity utilization and support current and future electric vehicle production.
“We are committed to creating long-term value by building a competitive and profitable business,” said CFO John Lawler – With price and margin compression, we have made the decision to adjust our product and technology roadmap and industrial footprint to meet our target of achieving positive EBIT within the first 12 months of launch for all new models“.
In addition to adjusting its product launch cadence and realigning battery sourcing, Ford now plans to leverage hybrid technologies for its upcoming three-row SUVs. As a result of this decision, the company will charge a special non-monetary charge of approximately 400 million of dollars to write down certain product-specific manufacturing assets for previously planned all-electric three-row SUVs, which Ford will no longer produce. These actions could also result in additional expenses and cash expenses up to 1.5 billion of dollars and the Company will reflect those in the quarter in which they are incurred, as a special item.
Furthermore, given the propulsion options and the growing demand for hybrids, the capital expenditure mix Ford’s annual sales of purely electric vehicles will decline from about 40 percent to 30%.