Ford Loses $44,000 on Every EV Sells as It Switches to Hybrids

Ford is facing significant financial challenges as it transitions its electric vehicle (EV) strategy, incurring losses of approximately $44,000 on each EV sold. The company is expected to take on $1.9 billion in charges and write-downs due to the cancellation of a planned three-row electric crossover, which has been delayed until 2027. In response to declining demand for EVs, Ford is pivoting towards hybrid models, particularly in the popular large SUV segment, while also reducing its capital spending on fully electric vehicles from 40% to 30% of its budget. The automaker anticipates a $5 billion loss in its EV business this year. Despite these setbacks, Ford plans to continue developing electric models, including a new commercial van and two pickup trucks, with a focus on profitability. The broader automotive industry is also adjusting its EV strategies, with General Motors making similar moves in response to lower-than-expected consumer interest. While sales of fully electric vehicles have increased, the growth rate has slowed significantly compared to previous years, prompting manufacturers to reconsider their investment plans.

- Ford is losing $44,000 on every EV sold as it shifts focus to hybrids.

- The company expects to incur $1.9 billion in charges due to the cancellation of an electric crossover.

- Ford is reducing its capital spending on EVs from 40% to 30% of its budget.

- The automaker anticipates a $5 billion loss in its EV business for the year.

- Other manufacturers, including General Motors, are also scaling back their EV plans due to declining consumer interest.