Sunday, May 26

Ford Adjusts Electric Vehicle Investment Plans

During Ford’s third-quarter earnings call, the company announced a strategic shift in its electric vehicle (EV) investment approach.

The automaker is postponing approximately $12 billion in planned spending on EV production, including the construction of a new battery factory in Kentucky.

This decision is a response to the current market dynamics, with Ford expressing caution about overcapacity in the EV sector.

“Given the dynamic EV environment, we are being judicious about our production and adjusting future capacity to better match market demand,” said Ford CFO John Lawler.

“All told, we have pushed about $12 billion of EV spend, which includes capex, direct investment, and expense,” he added.

Despite this adjustment, Ford reaffirmed its commitment to developing future EV models.

“We’re not moving away from our second generation [EV] products,” Lawler said in a media briefing on Thursday, per CNBC.

“We are, though, looking at the pace of capacity that we’re putting in place. We are going to push out some of that investment,” he added.

The company acknowledges the ongoing transition to electric vehicles, but emphasises the importance of aligning production capacity with market demand.

This move comes as various automakers reassess their EV targets and strategies due to factors like slower-than-expected adoption and cost considerations.

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