Ford Motor announced on Thursday that it would be delaying the production of at least two new electric cars and shifting its focus to making more hybrid vehicles. This decision comes as a response to the slowing sales of electric cars, prompting large automakers like Ford, General Motors, and Mercedes-Benz to rethink their strategies for electric vehicles.
The shift in focus by these automakers has been largely due to the challenges they have faced in making and selling enough electric cars profitably. Sales of electric vehicles have been growing, but the pace has slowed in recent months as automakers struggle to bring out more affordable models and reach a wider market.
According to Sam Abuelsamid, principal analyst for transportation and mobility at Guidehouse Insights, many companies rushed into the electric vehicle market too quickly with models that were too expensive for consumers. This has made it difficult to sell these vehicles, leading some consumers to opt for hybrid cars instead.
One such consumer, Andy Goodrich, chose a Toyota RAV4 Prime plug-in hybrid over a Tesla Model 3 or Rivian SUV due to concerns about finding charging stations. Goodrich highlighted the convenience of being able to charge his vehicle at home and switch to gasoline when needed for longer trips.
Ford’s CEO, Jim Farley, stated that the company plans to offer a hybrid version of every model it sells by the end of the decade. The company is also adjusting its production timeline, with plans to start making a large electric SUV in Ontario in 2027 and an electric pickup truck in Tennessee in 2026.
Despite the slowdown in electric vehicle sales, Ford reported an 86 percent growth in electric vehicle sales in the first quarter of the year. However, the total number of vehicles sold fell short of the company’s initial projections, leading to adjustments in production levels.
Overall, the shift towards more hybrid vehicles and the delay in electric car production reflect the challenges that automakers are facing in the rapidly evolving electric vehicle market. As they continue to navigate these challenges, companies like Ford are working to develop more affordable electric vehicles and capitalize on the growing demand for hybrid models.
