Ford has announced a delay in its planned $12 billion investments in electric vehicles (EVs) and the construction of a second battery plant with SK On, its joint venture partner. The decision comes as the demand for higher-priced premium EVs has weakened. While Ford’s overall profitability remains strong, its EV business, known as Model e, has reported losses, with a $1.3 billion loss in the third quarter. Ford aims to achieve an 8% margin on EVs by reducing operational costs and scaling quickly to address the competitive EV market.
The company is focusing on lowering the price of EVs rather than adding more features, taking inspiration from Tesla’s cost-focused approach. Ford plans to introduce lower-priced second and third-generation EVs, including a full-sized pickup truck. The automaker is also adjusting production and capacity to match market demand and considering potential adjustments to its global Battery Park Michigan plant.