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Ford has written off $1.9bn as it cancelled plans for an all-electric large SUV in the US, opting to produce a hybrid version instead in the latest sign of western carmakers struggling to make profitable electric cars.

The US carmaker said on Wednesday that it would not be able to reach a profit on the electric SUV within a year, its measure of whether a new car is viable, citing the stiff competition from Chinese manufacturers. It will initially write off the cost of $400m (£300m) in tooling for the vehicle, plus another $1.5bn (£1.15bn) in extra costs in the future.

Ford also said it would delay the successor to its F-150 Lightning electric pickup truck until 2027, after initially targeting a launch next year.

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[-] solsangraal@lemmy.zip 89 points 1 month ago

The Ford boss, Jim Farley, said the decision to produce fewer electric cars in favour of hybrids “gives our customers maximum choice and plays to our strengths”.

how does producing fewer options result in more choice, let alone "maximum" choice?

i feel like corporations are just throwing around "customer choice" as a justification for literally everything they do, regardless of how much "choice" is actually involved--same bullshit as tax-funded vouchers for private jesus schools

[-] Varyk@sh.itjust.works 38 points 1 month ago

short term profit that will result in long term market loss.

[-] dellish@lemmy.world 11 points 1 month ago

They are maximising choice by creating a new lowest rung on the ladder of choices. Now you can buy something good, or buy a Ford!

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[-] P1nkman@lemmy.world 5 points 1 month ago

We will produce only one of this item, giving our customers infinite choices, which again means unlimited profits!

[-] ayyy@sh.itjust.works 5 points 1 month ago

They are the customer of future “too big to fail” government bailouts, and they are choosing to get more free money.

[-] solsangraal@lemmy.zip 4 points 1 month ago

socialize losses, privatize profit

[-] Talaraine@fedia.io 4 points 1 month ago

I swear I lmao when I first heard they were getting rid of so many cars. It was so obvious they were cutting their own throat.

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[-] Gerudo@lemm.ee 65 points 1 month ago

You know what blows my mind? Ford actually made an inexpensive small truck, and they couldn't keep them in stock. It flew off the shelves so fast pre-orders were taking almost a year to produce.

They turn around and then make an almost 6 figure electric version of the f150, then wonder why they didn't sell.

Make an affordable electric vehicle, and you won't have a single problem selling them. It's not this fucking hard! Imagining how far the oil industry is up the asses of car manufacturers is a real scary thought.

[-] hark@lemmy.world 18 points 1 month ago

They turn around and then make an almost 6 figure electric version of the f150, then wonder why they didn’t sell.

I remember when they first revealed the price as around $40k. At that price, there was a lot of demand. I don't know if they underestimated expenses or they got greedy with the covid pump in prices, but it's obvious that price is one of the biggest factors affecting demand. Ultimately, EVs should be cheaper to produce than internal combustion vehicles because there are far fewer parts involved.

[-] burble@lemmy.dbzer0.com 13 points 1 month ago

A barebones ("work truck"?) electric Maverick would be wonderful.

[-] buzz86us@lemmy.world 15 points 1 month ago

💯💯 Just a basic electric poverty spec truck with roll up windows, and a dot matrix radio 260 miles of range, and 150kW charging We don't need all this smart crap just own the fact that you're old hat

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[-] BallsandBayonets@lemmings.world 3 points 1 month ago

Higher profit margin. They'd rather sell 1 truck at a $50,000 profit than 50,000 trucks with a $2000/ea profit.

[-] ptz@dubvee.org 54 points 1 month ago

Maybe stop making giant, fucking monstrosities of vehicles and focus on humanely-sized ones. I'd love to buy a Ford EV (my Fusion Hybrid has been a dream), but I do not want some grotesquely oversized monster truck or SUV (or their butt ugly crossover designs).

Every time I see one of those ridiculous bus-sized SUVs, I think of that scene from Borat where he asks the lady about it, she says it's so her baby has room, and he's like "must be huge baby!"

[-] sp3tr4l@lemmy.zip 26 points 1 month ago

Time for this image again:

[-] Cort@lemmy.world 5 points 1 month ago* (last edited 1 month ago)

~~So~~Do you have the plug in version of the fusion or the regular hybrid? The 20mi electric only range isn't great, but the extra oomph on the electric motor is really nice in the city.

[-] ptz@dubvee.org 3 points 1 month ago

Regular. I kick myself every day for not buying the Energi (the plug-in version). At the time, I didn't have anywhere to charge it. A year later, I bought a house where I could charge it easily.

The 20 mile range would cover all of my daily driving (though it's advertised as closer to 30 or 35 i thought)

[-] Cort@lemmy.world 2 points 1 month ago

35mpg on gas, 20mi electric range. On the electric only, it's more like 16-25 depending on weather/temp, with my high score of 30mi driving like a Granny in a 25mph zone.

I tried to get my mom to buy the energi version when she was looking at the CMAX(crossover fusion), she wanted more trunk space and got the regular hybrid. 3 years later I ended up buying the energi version (used) for a third of the price she paid new.

[-] ptz@dubvee.org 2 points 1 month ago

I get 45-55 in the hybrid (mostly city / suburbs) and about 42 highway/combined (during winter it's more like 36 mpg regardless). Does the extra battery weight reduce overall MPG that much? I don't drive like an old man, lol, but I do make heavy use of regen braking.

I've been looking to either trade in for or just buy an Energi model, but the closest I can find them is about 250 miles away. Sadly, haven't seen any closer than that since I bought this one.

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[-] sylver_dragon@lemmy.world 4 points 1 month ago

Unfortunately, you aren't the US car market. Oversized trucks and cross-over SUVs sell. The top 3 vehicles in 2023 were:

  1. Ford F-150
  2. Chevy Silverado
  3. Dodge Ram

The rest of the list is littered with trucks and cross-over SUVs. Though a couple Tesla vehicles make the list and do quite respectably (The Model Y is at #5). It's no surprise that US manufacturers are targeting large vehicles. That's what US consumers want. And sure, there are lots of arguments to be made against land-yachts. But, it made sense that Ford targeted large vehicles for EV sales. If they can get people to accept the F-150 Lightning, that could really move the needle on EV sales and help them scale up. Expecting customers to both buy-in to a newer technology and make radical changes in their buying habits, is a recipe for failure. Though, it also seems that Ford is managing to fail despite chasing consumer trends.

[-] themeatbridge@lemmy.world 36 points 1 month ago

"My arm cannot reach the high shelf, so I will cut it off."

[-] Diplomjodler3@lemmy.world 33 points 1 month ago

If they can't produce EVs profitably, Tesla and BYD will. They're destroying their future in the name of short term profits.

[-] cron@feddit.org 20 points 1 month ago

Hyundai now sells more EVs than Ford (both in the US).

GM, Rivian, BMW and Volkswagen are the next competitors.

[-] Diplomjodler3@lemmy.world 7 points 1 month ago* (last edited 1 month ago)

I'll assume Hyundai are producing EVs profitably. All the others most certainly aren't. All the incumbents and most of the startups are facing huge challenges in that regard.

[-] cron@feddit.org 8 points 1 month ago

BMW seems to do pretty well and is now selling ~20% EVs:

Once considered a laggard, the German luxury carmaker is one of only a few established automakers that has been able to compete effectively against Tesla. - source: nytimes

[-] n3m37h@sh.itjust.works 2 points 1 month ago

Tesla can barely produce a functional vehicle...

[-] BilboBargains@lemmy.world 20 points 1 month ago

How do you get through a billion dollars before realising the product is not viable?

[-] NotMyOldRedditName@lemmy.world 15 points 1 month ago

Easy.

Announce new models to rule the world

Pat self on back and give bonuses to all executives

Cancel project

Pat self on back for saving billions more and give even more bonuses to executives for being amazing.

[-] lemmylommy@lemmy.world 19 points 1 month ago

Oh no, no profit within a year. That’s like forever in corporate land.

[-] granolabar@kbin.melroy.org 5 points 1 month ago

Somebody will need to be held accountable.

[-] SulaymanF@lemmy.world 14 points 1 month ago

That’s ridiculous. The Ioniq 5 is a hit seller and just got picked as Car and Driver car of the year, so there’s definitely demand for an SUV EV.

[-] wewbull@feddit.uk 11 points 1 month ago

Ford has written off $1.9bn as it cancelled plans for simpler version in the US, opting to produce a version with both an ICE and batteries instead

It makes no sense

[-] Zacpod@lemmy.world 8 points 1 month ago

Same company that decided to stop making cars and only make trucks a few years ago. Their leadership has no idea how to do anything except sell oversized gas guzzlers to morons.

[-] Lucidlethargy@sh.itjust.works 7 points 1 month ago

That's okay, car companies like Honda and Subaru already have one. Nobody needs a Ford.

[-] Captnkrk69@lemmy.world 7 points 1 month ago
[-] bluGill@fedia.io 7 points 1 month ago

Guess I won't be buying a Ford. If they won't produce the cars I want I have to go elsewhere. Keeping my 1999 on the road is getting expensive, but I see no other option. (though my ebike covers about 90% of my needs, that last 10% isn't much so cheap is important)

[-] Kecessa@sh.itjust.works 6 points 1 month ago

Yeah so if you drive a 99 I'm pretty sure it's not an issue with the cars manufacturers are producing right now.

[-] bluGill@fedia.io 3 points 1 month ago

Well it is 25 xears old an has many age related issues. It could ose a replacemenc but the options are lacking so I'm rapairing it

[-] TheMightyCanuck@sh.itjust.works 7 points 1 month ago

'written off'

So they get a tax break for it?

[-] criticon@lemmy.ca 8 points 1 month ago

I mean, is a expense and no revenue, you only pay taxes when you make money

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[-] granolabar@kbin.melroy.org 5 points 1 month ago

citing the stiff competition from Chinese manufacturers.

Sounds like a sore loser answer haha

[-] n3m37h@sh.itjust.works 4 points 1 month ago

Did someone say stock buybacks?

Currently large electric vehicles make 0 sense

Make all passenger cars electric and work trucks ICE till the battery tech becomes suitable. Require licence to buy/drive big fuck you trucks and fine anyone who isn't using one for work.

[-] SulaymanF@lemmy.world 5 points 1 month ago

Car and Driver picked the Ioniq 5 N as car of the year. It’s an SUV EV with 624hp. The non-N model is a hit seller.

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[-] auzy@lemmy.world 3 points 1 month ago* (last edited 1 month ago)

I busted someone from a Ford distributor here in Australia talking shit on a Hyundai Facebook ad about EVs.

They're likely doing poorly because of the culture they've developed in their dealership network too

Unlike brands like Tesla, they're also not going all-in . They should start manufacturing batteries and other components for other applications

[-] MerchantsOfMisery@lemmy.ml 3 points 1 month ago

I'm just here to point out that a Ford Ranger today looks bigger than a F150 did a decade ago.

[-] Bbbbbbbbbbb@lemmy.world 2 points 1 month ago

Good news, in my opinion, Lucid is beginning to produce all electric SUVs later this year. Im sure the price point would have been comparable to fords anyway. I do have hopes Lucid makes it in the market.

[-] Serinus@lemmy.world 7 points 1 month ago

Oh boy, more SUVs. Just what we needed, more of the same.

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this post was submitted on 21 Aug 2024
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