Ford Motor Company (NYSE: F) said today that it is it is delaying the launch of its groundbreaking electric truck code-named “Project T3” to the second half of 2027. The truck will have so-called Ford first technologies, including upgraded bi-directional charging capability and advanced aerodynamics. The truck will be assembled at BlueOval City’s Tennessee Electric Vehicle Center. This is a major change in course that will result in costly special item charges for shareholders.
“We are committed to innovating in America, creating jobs and delivering incredible new electric and hybrid vehicles that make a real difference in CO2 reduction,” said Ford President and CEO Jim Farley. “We learned a lot as the No. 2 U.S. electric vehicle brand about what customers want and value, and what it takes to match the best in the world with cost-efficient design, and we have built a plan that gives our customers maximum choice and plays to our strengths.”
Electric vehicle consumers currently, so to speak, are more cost-conscious than early adopters, looking to electric vehicles as a practical way to save money on fuel and maintenance, as well as time by charging at home. This, along with numerous new electric vehicle choices coming to market during the next 12 months, as well as rising compliance requirements, has multiplied pricing pressures. In short (groan) all automakers to survive must have globally competitive cost structure, emphasizing some customer and product segments to ensure profitable growth and capital efficiency.
“We’re committed to creating long-term value by building a competitive and profitable business,” said John Lawler, Ford vice chair and chief financial officer. “With pricing and margin compression, we’ve made the decision to adjust our product and technology roadmap and industrial footprint to meet our goal of reaching positive EBIT within the first 12 months of launch for all new models.”
In addition to adjusting the timing of product launches and realigning battery sourcing, Ford now plans to leverage hybrid technologies for its next three-row SUVs. The company will take a special non-cash charge of ~$400 million for the write-down of certain product-specific manufacturing assets for the previously planned all-electric three-row SUVs, which Ford will no longer produce. These actions may also result in additional expenses and cash expenditures of up to $1.5 billion and the company will reflect those in the quarter in which they are incurred, as a special item.
Lawler said an important enabler to improve profitability is accelerating the mix of battery production in the U.S. that will qualify for the Advanced Manufacturing Tax Credit (this could be trumped in January of 2025 with his promise to kill EV credits and such?) Also, given the propulsion options, and increasing demand for hybrids, Ford’s mix of annual capital expenditures dedicated to pure electric vehicles will decline from about 40% to 30%.
“An affordable electric vehicle starts with an affordable battery,” Farley said. “If you are not competitive on battery cost, you are not competitive.”
- Ford and LG Energy Solutions are targeting to move some Mustang Mach-E battery production from Poland to Holland, Michigan, in 2025 to qualify for Inflation Reduction Act benefits.
- The BlueOval SK joint venture’s Kentucky 1 plant will manufacture cells for the current E-Transit with enhanced range and F-150 Lightning beginning mid-2025, delivering significant cost improvements coming online earlier than planned.
- BlueOval SK at BlueOval City in Tennessee will produce cells starting in late 2025 for Ford’s new electric commercial van to be built at Ford’s Ohio Assembly Plant. Those same cells will be sourced to later power the next-generation electric truck to be assembled at BlueOval City and future emerging technology electrified vehicles. This common cell strategy gives Ford significant sourcing flexibility for manufacturing across multiple segments and electrified platforms as the market continues to evolve.
- Lithium iron phosphate (LFP) battery production is on track to begin in 2026 at BlueOval Battery Park Michigan – America’s first automaker-backed LFP battery plant – qualifying for Inflation Reduction Act benefits and giving Ford one of the lowest-cost battery cells in North America.
Convicted felon Trump likely will kill these as well since the Inflation Reduction Act was an awakened accomplishement of the Biden-Harris Administration. Here’s a new slogan: Making American manufacturing weak again!
Shareholder Warning – Ford Delays Next Gen Electric Truck
Ford Motor Company (NYSE: F) said today that it is it is delaying the launch of its groundbreaking electric truck code-named “Project T3” to the second half of 2027. The truck will have so-called Ford first technologies, including upgraded bi-directional charging capability and advanced aerodynamics. The truck will be assembled at BlueOval City’s Tennessee Electric Vehicle Center. This is a major change in course that will result in costly special item charges for shareholders.
“We are committed to innovating in America, creating jobs and delivering incredible new electric and hybrid vehicles that make a real difference in CO2 reduction,” said Ford President and CEO Jim Farley. “We learned a lot as the No. 2 U.S. electric vehicle brand about what customers want and value, and what it takes to match the best in the world with cost-efficient design, and we have built a plan that gives our customers maximum choice and plays to our strengths.”
Electric vehicle consumers currently, so to speak, are more cost-conscious than early adopters, looking to electric vehicles as a practical way to save money on fuel and maintenance, as well as time by charging at home. This, along with numerous new electric vehicle choices coming to market during the next 12 months, as well as rising compliance requirements, has multiplied pricing pressures. In short (groan) all automakers to survive must have globally competitive cost structure, emphasizing some customer and product segments to ensure profitable growth and capital efficiency.
“We’re committed to creating long-term value by building a competitive and profitable business,” said John Lawler, Ford vice chair and chief financial officer. “With pricing and margin compression, we’ve made the decision to adjust our product and technology roadmap and industrial footprint to meet our goal of reaching positive EBIT within the first 12 months of launch for all new models.”
In addition to adjusting the timing of product launches and realigning battery sourcing, Ford now plans to leverage hybrid technologies for its next three-row SUVs. The company will take a special non-cash charge of ~$400 million for the write-down of certain product-specific manufacturing assets for the previously planned all-electric three-row SUVs, which Ford will no longer produce. These actions may also result in additional expenses and cash expenditures of up to $1.5 billion and the company will reflect those in the quarter in which they are incurred, as a special item.
Lawler said an important enabler to improve profitability is accelerating the mix of battery production in the U.S. that will qualify for the Advanced Manufacturing Tax Credit (this could be trumped in January of 2025 with his promise to kill EV credits and such?) Also, given the propulsion options, and increasing demand for hybrids, Ford’s mix of annual capital expenditures dedicated to pure electric vehicles will decline from about 40% to 30%.
“An affordable electric vehicle starts with an affordable battery,” Farley said. “If you are not competitive on battery cost, you are not competitive.”
Convicted felon Trump likely will kill these as well since the Inflation Reduction Act was an awakened accomplishement of the Biden-Harris Administration. Here’s a new slogan: Making American manufacturing weak again!