On Aug. 21, the automaker said it was scrapping plans for a sizeable all-electric sport utility vehicle (SUV) and delaying production of its all-electric F-150 Lightning pickup truck to the second half of 2027. It also plans to sell its existing EV products at a steep discount.
According to Climate Depot, the car manufacturer will "instead focus on making SUVs as gas-electric hybrids." A separate report mentioned that Ford reported an increase in losses in the first quarter (Q1) of 2024, amounting to $1.3 billion. Ford's EV unit dubbed Model E only sold 10,000 vehicles for Q1 2024, 20 percent lower than the number of units sold a year prior.
The company's revenue dipped 84 percent to about $100 million, which it attributed mostly to price cuts for EVs across the auto industry. Ford Chief Financial Officer John Lawler said a price war among EVs for about a year and a half has made profitability very difficult.
Ford CEO Jim Farley meanwhile told investors during a conference call that the company is making changes in its EV business. He added that the company's planned next generation of EVs will allow it to be profitable on that business in the near future. In line with Farley's remarks, the automaker said it would realign its U.S. battery sourcing to reduce costs and boost capacity for current and future production.
"An affordable EV starts with an affordable battery. If you are not competitive on battery cost, you are not competitive," said Farley. (Related: Electric vehicles are a SCAM – here's why.)
Ford's EV downsizing a serious blow to Biden-Harris green tyranny
Climate Depot noted that Ford's decision to downsize its EV production deals a serious blow to the Biden administration's EV rule, which was enacted in March. According to the alternative media outlet, the Environmental Protection Agency's (EPA) final rule says "the industry could meet the limits if 56 percent of new vehicle sales are electric by 2032, along with at least 13 percent plug-in hybrids or other partially electric cars and more efficient gasoline-powered cars that get more miles to the gallon."
However, car dealers noted that the EV rule will push people out of work – aside from impacting corporate profits. According to one estimate, the transition to EV production will kill about 117,000 auto jobs in the United States. Another estimate puts that number much, much higher.
True enough, some car companies are already laying off their workers – with Ford axing 3,000 white-collar jobs last year. Stellantis – which owns the Jeep, Ram, Dodge and Chrysler marques – laid off 1,200 employees at its Jeep plant in Illinois. Both companies cited EV transition as a reason for the job cuts.
Despite the layoffs, Stellantis said its European EV business was already profitable last year. Meanwhile, General Motors reported that it remains on track to have its North American EV business turn profitable in the second half of this year.
Tesla, the world’s largest EV maker, reported that its adjusted earnings plunged 48 percent in the first quarter as revenue fell nine percent. This came after the company founded by Elon Musk reported the first year-over-year drop in sales since the pandemic.
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Watch this Fox Business report about former President Donald Trump explaining why EV efforts will fail in the United States.
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