As sales of electric vehicles in the United States begin to slow, Ford engine Co. says it will delay the rollout of new electric pickup trucks and a new large electric SUV as it adds gasoline-electric hybrids to its model lineup.
The Dearborn, Michigan, company said in a statement Thursday Statement that it was delaying the launch of a new three-row electric SUV from 2025 to 2027, to take advantage of improving battery technology and “allow the mainstream market for three-row electric vehicles to develop further.”
And he said a high-profile new electric pickup, its next-generation F-Series, which will be built at a new factory in Tennessee, will be delayed a year until 2026, after previously announcing it would would be commercialized by the end of 2025.
The decline comes as growth in U.S. electric vehicle sales slowed to 2.7% in the first quarter of the year, well below the 47% increase that fueled record sales and share market growth of 7.6% last year. New vehicle sales overall increased by nearly 5%and the market share of electric vehicles fell to 7.1%.
Sales of hybrids, however, rose 45% between January and March, while plug-in hybrids, which can travel a short distance on battery power before a gas-electric system kicks in, increased by 34% according to Motorintelligence.com.
“As the second-largest electric vehicle brand in the United States for two years, we are committed to growing a profitable electric vehicle business, using capital wisely and bringing to market the right gasoline, hybrid and fully electric vehicles at the right time ” Ford said. said CEO Jim Farley in a statement.
The company said it was still working “to build a full range of electric vehicles” and added that it would offer hybrid versions in its gasoline vehicle lineup by the end of the decade. While deprioritizing its large electric vehicles, the company also plans to launch three smaller electric vehicles starting at $25,000.
Ford’s electric and hybrid vehicle sales increased 86% and 42%, respectively, in the first quarter from a year earlier, Ford reported. However, warning signs are also growing in the electric vehicle market.
Electric vehicle makers have struggled in recent quarters, including Elon Musk’s. You’re herewho announced Tuesday his first year-over-year decline in quarterly sales. Chinese electric car makers also saw a drop in sales compared to the previous quarter, likely due to a to slow down during the week of Chinese New Year celebrations.
Meanwhile, cash-strapped consumers are reconsidering purchasing expensive electric vehicles and looking for alternatives. Sales of hybrid vehicles in the United States, for example, grew five times faster in February than sales of pure electric vehicles, according to Morgan Stanley. Gas-powered vehicles also look more attractive, with the U.S. Energy Information Administration expecting lower gas prices. to fall in 2024 and 2025.
Farley had previously pinned high hopes on Ford’s electric vehicle lineup, led by its electric truck, the F-150 Lightning, which debuted in 2022. But last month, the company announced it would would reduce production and lay off the workers who were producing. the truck at its factory in Dearborn, Michigan, after lackluster sales last year.
Even though Ford initially planned to produce 150,000 F-150 Lightnings per year, it sold only 24,000 Last year.
Ford also said it “expects to offer” hybrid versions of all of its gas-powered passenger vehicles by the end of the decade in North America.
Industry analysts say most early adopters of technology and people looking to reduce their emissions have already purchased electric vehicles. Automakers now need to convince skeptical mainstream buyers to go electric, but those customers fear limited range and a lack of charging stations.
Ford expects pre-tax losses for its electric vehicle unit going from $4.7 billion last year to a range of $5 billion to $5.5 billion this year. But he projects commercial vehicles will bring in $8 billion to $9 billion, up from $7.2 billion last year. Gasoline vehicles and hybrids are expected to bring in $7 billion to $7.5 billion, about the same as last year.