As the Trump Administration lowers fuel-economy standards and encourages Americans to reconsider the station wagon, Ford has announced it will absorb a $19.5 billion hit to profits in an effort to move back in time.
Ford Motor said Monday that it would scale back plans to produce electric vehicles and take a $19.5 billion hit to its profit to cover the costs of a major change in strategy.
The announcement amounted to an admission by Ford that it had overestimated demand for battery-powered vehicles and underestimated the staying power of vehicles powered by gasoline and diesel. Other big automakers, including General Motors and Stellantis, have also recently changed their plans and placed a far greater emphasis on combustion engine vehicles and hybrids.
The U.S. auto industry's move away from electric vehicles is also a result of a reversal in government policies since President Trump took office in January. His administration has slashed government incentives for electric vehicles while promoting fossil fuels. This month, the administration announced plans to significantly weaken fuel economy standards, which would reduce automakers' incentive to make electric cars.
NYT
Ford will focus on hybrids and gas-powered vehicles, undoing a significant investment in building capacity to produce EV trucks. While Ford claims it'll still deliver a mid-sized EV truck, we'll see how long that lasts. This mirrors moves by Stellantis and GM, all encouraged by the current administration's love of the oil industry and rolling back of EV incentives.
Previously:
• All you need to know about 1983's Wagon Queen Family Truckster
• White House to advance global warming so we can have the Wagon Queen Family Truckster
