Ford's EV Target Delayed, Warns of Wider Losses Amid Slower Adoption
Ford is pushing back its production targets for electric vehicles (EVs) due to slower-than-expected adoption. The company now anticipates reaching a rate of 600,000 EVs per year by 2024, instead of the earlier estimate of achieving this level by the end of 2023. The automaker had previously aimed for a rate of over 2 million EVs per year by the end of 2026, but the timeline for this goal is now uncertain. Despite the delay, Ford's CFO, John Lawler, asserted that the company's spending plan and profitability goal for its EV business remain unchanged.
They are still targeting an 8% operating margin for their EV division and do not intend to reduce capital spending on EVs. Ford's CEO, Jim Farley, believes the more gradual ramp-up of EV production could work in their favor, citing the success of their first-generation EVs, the F-150 Lightning, and the Mustang Mach-E.
The recent woes faced by America's leading automakers - Ford, General Motors, and Stellantis - have gone largely unnoticed amidst their impressive profits.