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Ford Reports Sluggish EV Adoption

Company delays production targets for electric vehicle unit.

July 31, 2023
Ford Reports Sluggish EV Adoption

Despite overall Q2 profitability, Ford's Model e unit saw an operating loss of $1.8 billion.

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IMAGE: Julissa Helmuth, Pexels

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Because of sluggish adoption rates, Ford Motor has announced that it will delay its production targets for electric vehicles, reported CNBC.

Ford's goal to produce 600,000 electric vehicles per year has been pushed back to 2024, after it initially estimated it would meet that target by the end of this year. The automaker is no longer confident it will reach its goal of producing over two million cars annually by the end of 2026, CNBC reported.

CFO John Lawler noted in the automaker’s second-quarter earnings results that the transition to EVs is “happening” but may “take a little longer” and “be slower than the industry expected.”

Lawler stressed that Ford remains committed to its EV investment plan and profitability target for its EV unit. He said Ford has not changed its target of achieving an 8% operating margin for its EV business and will continue its current level of capital spending on it.

CEO Jim Farley suggested in a statement to CNBC that a slower increase in EV production could be advantageous for the company.

Despite Ford's overall profitability during the second quarter, the Model e unit suffered an operating loss of $1.8 billion, according to the earnings call.

 

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