Reasons Behind the Loss: Ford attributed the Q3 loss to “continued investment in next-generation EVs and challenging market dynamics.” Concerning the latter, the company observed that “many North American customers interested in buying EVs are unwilling to pay premiums for them over gas or hybrid vehicles.” This reluctance among consumers to pay more for EVs puts considerable pressure on pricing and profitability, a challenge that Ford had to confront.
Adjusting the Course: In response to these challenges, Ford has decided to take action by “appropriately balancing the pace of EV investment with the pace of customer demand.” As part of this adjustment, the company is scaling back approximately $12 billion in planned EV investments. This includes reducing production of the Mustang Mach-E and delaying one of the two battery plants intended to open in Kentucky in partnership with SK On. While Ford did not specify the duration of these delays, it remains committed to its other EV plans, including the battery plant in Kentucky and the Blue Oval City complex in Tennessee.
