Ford Reduces EV Battery Orders Amidst Market Challenges

As the electric vehicle (EV) market faces challenges, Ford is making strategic adjustments to its operations. Here are the key points to note:

Shrinking EV Battery Orders

Ford is reportedly reducing the number of EV batteries it orders from suppliers. This move comes as the Model e division continues to invest in development, impacting profitability.

Investing in Future Profitability

Despite the challenges, Ford remains committed to investing in new electric vehicles with the hope of achieving profitability in the near future.

Market Trends Impacting Ford

The transition to EVs has been challenging for automakers like Ford. While overall EV sales grew by 2.6% in the first quarter of 2024, attracting fewer new buyers compared to previous years has led Ford to reassess its EV strategy.

Adjusting Battery Orders

Ford plans to reduce the number of batteries ordered from suppliers like SK On Co., LG Energy Solutions Ltd., and China’s CATL. Despite this reduction, Ford will maintain its contracts with these partners.

Addressing EV Losses

Ford is grappling with the high cost of EV development and mounting losses in the EV sector. While initial reports suggested significant losses per EV sold, further analysis indicates a more nuanced picture.

Future Outlook

Despite the challenges, Ford’s commitment to EVs remains strong. The company is developing new platforms for electric vehicles of varying sizes, aiming to drive profitability in its electric division.

It is crucial for automakers like Ford to listen to consumer feedback and adapt their EV offerings to stimulate market growth. As Ford’s CFO John Lawler emphasized, the Model e division must deliver returns on the company’s investments.