Ford announced plans to develop and produce high-margin electric vehicles as part of its more aggressive electrification strategy, Car Scoops reports.
This major advancement prompted the American automaker to kill three internal combustion engine-powered vehicles, including the Escape, Edge, and Transit Connect.
By doing so, Ford can access the allocated resources for these gas-based models to its new planned EVs.
Ford to suffer a $4.5 billion loss in 2023
Ford anticipates its EV unit to record a whopping $4.5 billion loss this year due to the intense competition from industry leader Tesla, established automakers, and emerging startups.
In effect, Ford also withdrew its production guideline of 400,000 EVs per year by 2024. That said, the American legacy automaker will also have to adjust its annual target of producing 2 million EVs by 2026.
These adjustments came after Ford’s poor sales performance in its EV business.
Ford’s new EV platform
Despite these challenges, Ford remains optimistic that its second-gen electric vehicle platform can aid the company in recovering its losses.
Ford claims that this new EV platform can cut the costs and complexity of producing EVs with an 8% margin by 2026, according to Auto News.
Ford aims to use the new electric platform for its planned full-size pickup and three-row SUV.
The electric pickup will undergo production in Tennessee, while the e-SUV will be in Oakville, Canada.
Plan implementation
Ford will stop producing the Edge as early as next year to give way for the new electric SUV. The automaker aims to renovate and upgrade the Oakville factory for the imminent EV production there.
Ford will also kill the Transit Connect in 2024 in the US. However, it will remain in its showrooms in Europe.
Meanwhile, Ford has yet to announce the exact timeline for the Escape. The model has just been revamped this year, so Ford may continue producing it for some more years.
Ford aims to become an all-electric brand in Europe by 2030
Motor Biscuit reported that Ford also aims to focus on electric vehicles for the European market. According to the company, it will halt the production of all of its ICE vehicles in the region by the end of the decade.
“We successfully restructured Ford of Europe and returned to profitability in the fourth quarter of 2020. Now we are charging into an all-electric future in Europe.”
Stuart Rowley, Ford Europe President
The move will enable Ford to only market all-electric vehicles for European customers as it aims to catch up in the rapidly growing industry.
Notably, Ford recently partnered with German legacy automaker Volkswagen. Therefore, the American brand may soon utilize VW’s famous MEB platform to solidify its presence in the region.
Ford will also invest $1 billion to build a new factory inside its Cologne facility, which is expected to produce the first of its planned EV models this year.
See Also:
- Ford launches multiple discounts and incentives for 2023 Mustang Mach-E in select US cities
- Ford to develop an in-road wireless charging technology for its electric models
- Ford CEO explains why legacy automakers lag in OTA updates
- Ford steps up EV efforts with plans to electrify the Fiesta Model and modifies Mustang Mach-E
- Ford halts iconic Fiesta model production to pave the way for the upcoming electric Explorer SUV
Ford’s decision to kill its three popular ICE models demonstrates its commitment to fully becoming an all-electric brand like its closest rival, Tesla. It is also unsurprising, given how governments worldwide have promoted EVs over polluting gas-powered vehicles.
