Ford recently disclosed plans to delay battery production at its second BlueOval SK plant in Hardin County, Kentucky. The decision came during its third-quarter earnings call, where the automaker highlighted that electric vehicle (EV) adoption hasn’t been as rapid as initially anticipated.
EVs are growing – just slower than what the public anticipated
While many might see this as a drawback for the electric revolution, Ford assures that EVs are growing, albeit not as quickly as forecasted. T.R. Reid, Ford spokesperson, emphasized that the slowing pace doesn’t indicate a lack of faith in EVs but is a strategic move to align with current market conditions.
The delay is a temporary maneuver responding to the financial hiccups that Ford has experienced lately. Their EV business, Model e, reported an operating loss of $1.3 billion for the third quarter. Each EV sold during this period cost the company around $36,000. It’s a loud wake-up call, signaling Ford to be cautious in how they proceed with their EV investments.
It’s not just Ford that’s recalibrating its approach; General Motors too has scaled back its initial aim to build 400,000 EVs in North America by mid-2024. This coordinated pulling of the reins by leading automakers is an acknowledgment of the current speed bumps on the highway to electric mobility.
However, let’s not forget that Ford still has ambitious plans, such as the Blue Oval City complex in Tennessee, set to kick off battery production in 2025. The company also maintains its joint venture with Korean battery manufacturer SK On, indicating that its long-term commitment to EVs is unwavering.
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(Via)
