by ZeroHedge News Staff at ZeroHedge
The trend of legacy automakers ditching their plans and investments in EVs continues, with Ford reportedly the latest to cancel plans for a large three-row electric sport-utility vehicle, according to a new report from the Wall Street Journal.
The company will take $1.9 billion in related special charges and write-downs as a result, the report said.
Ford is canceling due to pricing pressures and increased competition, instead opting to focus on hybrid versions of its popular Explorer and Expedition models.
This decision reflects a broader trend among automakers that we have written about over the last year or two, especially since the UAW extorted negotiated their latest labor contracts from the Detroit automakers.
Additionally, consumer demand has been weaker than anticipated, with concerns over cost and charging infrastructure. As a result of all of these factors, combined with increased competition out of China, legacy automakers are scaling back EV investments. VW also announced it was stepping back from EVs to focus on hybrids earlier this year, as we wrote in May.
Ford Chief Financial Officer John Lawler commented: “Based on where the market is and where the customer is, we will pivot and adjust and make those tough decisions.”
The WSJ reported on Tuesday that Ford has also delayed the launch of a new electric pickup truck to 2027, marking the second postponement, and reduced its EV investment to 30% of its budget, down from 40%…
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