On Wednesday this week, Ford announced that the brand's investments in electric cars will be cut sharply. A large, 7-seater SUV is dropped in the mix.
Ford backs down once again. At least when it comes to electric cars.
In a press release, which was sent out on Wednesday this week, the brand confirms that there is a significant cut in investments in the electric car division, Model e.
Partly the brand scraps plans for a 7-seater SUV, which has already been postponed once, partly the launch of a new electric pickup is delayed.
The changed plans mean that Ford is reducing investments in electric cars by a total of 10 percent. From now on, the car brand will use 30 percent of what is set aside for future investments in electric cars.
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And not only that – according to the American financial media Bloomberg, Ford is also changing its battery supply chain. This must be done in order to be more competitive with the Chinese car industry.
However, it will be expensive for Ford to change its mind once again when it comes to electric cars. The brand, which already loses 1 million kroner every time an electric car leaves the assembly line, expects to add another 400 million dollars to now.
And that's just on write-downs. The amount, which corresponds to just under 2.7 billion Danish kroner, must be added to the costs that Ford expects to increase by a good one and a half billion dollars, corresponding to 10 billion Danish kroner.
– We are committed to creating long-term value by building a competitive and profitable business, says Ford's finance director John Lawler in the press release .
At the same time, Ford states that with the new strategy it will be able to focus more on hybrid cars than before. Something that will probably also have an impact on the European part of the business. And that already in 2027. Read more about it here .
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