The US EV market — an uncertain future
Automaker Ford has said that it is again pushing back plans to manufacture an electric three-row SUV until 2027, amid pricing concerns and a soft market, Mike Colias reported for the Wall Street Journal. Instead, Colias wrote, Ford will offer hybrid three-row SUV's.
Ford instead will offer hybrid gas-electric versions of future large, three-row SUVs, a popular vehicle category that includes the brand’s Explorer and Expedition nameplates.
In an attempt to be responsive to consumer demand, Ford also pushed back for a second time its launch of an EV pick-up truck till 2027 and will decrease capital spending on EVs from 40 to 30% of its budget.
“Based on where the market is and where the customer is, we will pivot and adjust and make those tough decisions,” Ford Chief Financial Officer John Lawler said.
That appears to be a wise move on Lawler's part as the company is projected to lose $5 billion on electric vehicles this year; it lost $44,000 on every EV sold in the second quarter of this year.
Waning public enthusiasm for EVs along with tougher emissions regulations and competition from the Chinese EV markets are all factors affecting the US EV market, Colias wrote.
Carmakers are trying to strike a tricky balance on electric vehicles. Tougher tailpipe-emissions rules, along with the rapid rise of Chinese EV makers, are pressuring them to invest in the technology. But consumer interest in EVs has waned after a burst of enthusiasm.
The interim solution for many automakers will be hybrid vehicles, anticipating that consumers will at some point be more ready to make the jump to fully electric vehicles
Meanwhile, sales of hybrid vehicles have risen sharply over the past year, and many automakers have said they plan to roll out more of them as an interim step for customers who aren’t ready to make the leap to a fully electric model.
The outlook for auto manufacturers may change in the future if former President Trump gets back into the oval office. Jack Davis, writing for the Western Journal, reported that Trump would offer Elon Musk an advisory role in his administration should Musk endorse him, but that would not mean that he would force citizens to change to EVs. Trump said that he might scrap the $7,500 tax credit for the purchase of EVs which was approved during the current administration saying that “[t]ax credits and tax incentives are not generally a very good thing.” Trump also said that he would let consumers choose what type of car they want to buy.
“I’m a big fan of electric cars, but I’m a fan of gasoline-propelled cars, and also hybrids and whatever else happens to come along,” he said.
Trump also indicated, he would jettison Biden’s rules that pushed automakers toward producing more EVS, saying he envisions a “much smaller market” for them due to battery range and cost concerns.
Reuters tweeted about Ford's plans in the video below.
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