Ford May Postpone New EV Launches Amid Strategy Reboot

[ice-capades]

Ford May Postpone New EV Launches Amid Strategy Reboot

https://fordauthority.com/2024/02/ford-may-postpone-new-ev-launches-amid-strategy-reboot/

 

 

Amid slowing demand, Ford recently announced that it was pushing back $12 billion in planned EV investments, though it certainly isn’t giving up on all-electric vehicles. Rather, the automaker is shifting its strategy and working on new, low-cost EVs as it works to drive prices down and overcome one of the biggest obstacles standing in the way of sales growth – and profitability. Now, it seems as if Ford may also push back some of its planned new EV launches in the coming months as part of this strategy reboot as well, according to Automotive News.

 

This news comes straight from Ford CEO Jim Farley, who noted that the company “may delay some upcoming EVs” and also look at securing batteries from additional suppliers as a way to cut costs. Farley noted that the automaker expects to lose around $5 billion in its all-electric Model e unit this year – 15 percent more than 2023 – and is also delaying its previous goal of reaching an eight percent margin on EVs by 2026.

 

Ford still expects EV sales to continue to grow moving forward, but Farley admitted that the company is rethinking its strategy on those types of vehicles as thus far, the demand curve has proven to be quite different from traditional ICE models. This became clear after early adopters strained the automaker’s ability to build enough EVs to meet demand at first – but once those buyers exited the market, both demand and sales cratered.

 

This change in philosophy is also clear from Lincoln’s recent moves, which include delaying its planned transition to all-electric vehicles and putting its EV dealer sales program on indefinite hold. As a result, Lincoln expects that its revamped ICE lineup will help the brand hit 100k sales in 2024 – a mark it hasn’t reached since 2020.

 

Edited February 9 by ice-capades
Additional Content

[mackinaw]

On this topic, if you have 20 minutes, read through the transcript of the recent 2023 fourth quarter earning's call.  

 

https://www.fool.com/earnings/call-transcripts/2024/02/07/ford-motor-company-f-q4-2023-earnings-call-transcr/

[Oac98]

1 hour ago, mackinaw said:

On this topic, if you have 20 minutes, read through the transcript of the recent 2023 fourth quarter earning's call.  

 

https://www.fool.com/earnings/call-transcripts/2024/02/07/ford-motor-company-f-q4-2023-earnings-call-transcr/

Thanks for this article I smell some delayed launches at OAC and BOC. If my interpretation is correct they will only launch when they believe they can be profitable?! Someone educate me on this because to me that says to me that delays are coming! 

[silvrsvt]

49 minutes ago, Oacjay98 said:

Thanks for this article I smell some delayed launches at OAC and BOC. If my interpretation is correct they will only launch when they believe they can be profitable?! Someone educate me on this because to me that says to me that delays are coming! 

 

Most likely this deals with cheaper products that are coming down the pike like the C class products like the Escape replacement that was supposed to come out in 2027 or so. 

 

BOC and OAC are too far a long to really delay them and make much sense...doesn't make any sense to keep you guys down for 24 months or something. BOC might be a delay of a couple of months, but it needs to get done since it will help the reporting situation with Model E. 

[joseodiaga4]

1 hour ago, Oacjay98 said:

Thanks for this article I smell some delayed launches at OAC and BOC. If my interpretation is correct they will only launch when they believe they can be profitable?! Someone educate me on this because to me that says to me that delays are coming! 

Acording to Borg, at least the Lincoln Ev is already delayed and would be a 2026 model but after this I am not sure anymore about anything ?

[akirby]

I would not be shocked if they cancelled the Oakville EVs altogether and moved Nautilus production back there, then made a new NA C2 edge to go with it.

[jpd80]

20 minutes ago, akirby said:

I would not be shocked if they cancelled the Oakville EVs altogether and moved Nautilus production back there, then made a new NA C2 edge to go with it.

You know, I was just about to post that same thought, it seems like the natural thing to do.

 

Just a thought on contingency plans,

To save time and money, Ford could just  rebrand the Evos as the new Edge,

it and Nautilus could be imported from China until OAC reconfigure is completed.

[joseodiaga4]

31 minutes ago, akirby said:

I would not be shocked if they cancelled the Oakville EVs altogether and moved Nautilus production back there, then made a new NA C2 edge to go with it.

that would make sense. I know that at the end everything falls into the revenue and cost savings but never really understood why the TVs couldn't coexist with the new EVs

Edited February 9 by joseodiaga4

[joseodiaga4]

12 minutes ago, jpd80 said:

You know, I was just about to post that same thought, it seems like the natural thing to do.

 

Just a thought on contingency plans,

To save time and money, Ford could just  rebrand the Evos as the new Edge,

it and Nautilus could be imported from China until OAC reconfigure is completed.

agree, the Evos could be an alternative. I thought they planned to offer in the US at some point.

Off topic but also would like to see something like the Evos as a Lincoln coupe CUV. 

[DeluxeStang]

51 minutes ago, jpd80 said:

You know, I was just about to post that same thought, it seems like the natural thing to do.

 

Just a thought on contingency plans,

To save time and money, Ford could just  rebrand the Evos as the new Edge,

it and Nautilus could be imported from China until OAC reconfigure is completed.

Are the new three row EVs really so bad that there's no way to justify their existence?

[jpd80]

22 minutes ago, DeluxeStang said:

Are the new three row EVs really so bad that there's no way to justify their existence?

It’s more about opportunity cost, is this the best use of Ford’s resources versus doing something else.

When a decision like that is made, there’s a certain amount of inevitability, it’s protecting Explorer.

 

Ford is basically trying to sell what amounts to a Tesla X competitor whilst continuing with CD6 Explorer.

The moment Ford chose to do that, it set the vehicles on a certain course no matter what we think.

 

Edited February 9 by jpd80

[tbone]

2 hours ago, akirby said:

I would not be shocked if they cancelled the Oakville EVs altogether and moved Nautilus production back there, then made a new NA C2 edge to go with it.

One can only hope. 

[Oac98]

4 hours ago, silvrsvt said:

 

Most likely this deals with cheaper products that are coming down the pike like the C class products like the Escape replacement that was supposed to come out in 2027 or so. 

 

BOC and OAC are too far a long to really delay them and make much sense...doesn't make any sense to keep you guys down for 24 months or something. BOC might be a delay of a couple of months, but it needs to get done since it will help the reporting situation with Model E. 

I can see Ford delaying them further. The plans have changed so much my skepticism is growing. 5 years and not even a camouflaged unit in sight. Just by their wording I’m anticipating some kind of change in the plan. They’ve been pretty quiet on OAC, come on Ford we need more than vague info! 

[Oac98]

1 hour ago, jpd80 said:

You know, I was just about to post that same thought, it seems like the natural thing to do.

 

Just a thought on contingency plans,

To save time and money, Ford could just  rebrand the Evos as the new Edge,

it and Nautilus could be imported from China until OAC reconfigure is completed.

The Evos is an ICE MACH E to me but  it’s gonna be interesting to hear what kind of delays or changes are forthcoming. BOC OAC AND CUATITLAN will all be under capacity if sales remain low if and when the products launch.

[Oac98]

1 hour ago, DeluxeStang said:

Are the new three row EVs really so bad that there's no way to justify their existence?

It’s almost as though Ford is forecasting now that they won’t do well or far less than the 100000 a year they projected. The market is so volatile, the script got flipped on them quickly. 

[Oac98]

5 hours ago, joseodiaga4 said:

Acording to Borg, at least the Lincoln Ev is already delayed and would be a 2026 model but after this I am not sure anymore about anything ?

Me neither! 

[jpd80]

1 hour ago, Oacjay98 said:

The Evos is an ICE MACH E to me but  it’s gonna be interesting to hear what kind of delays or changes are forthcoming. BOC OAC AND CUATITLAN will all be under capacity if sales remain low if and when the products launch.

Remembering the whole reason why the three rows were transferred away from Cuautitlan was exactly because

of the anticipated production capacity required by Mach E……So, there’s that….

 

I just think Ford did not renew  OAC Edge / Nautilus as a way of eliminating internal competition with Mach E,

they gave it every chance but in th east twelve months, Mach E sales have nose dived globally.

In China, Mache sells in the hundreds, has done so for over a year because Ford disappointed Chinese buyers with delivery delays (important because of China’s registration deadline windows)

 

1 hour ago, Oacjay98 said:

It’s almost as though Ford is forecasting now that they won’t do well or far less than the 100000 a year they projected. The market is so volatile, the script got flipped on them quickly. 

The whole reason why Ford went so aero on the three row utility was because it has fallen behind on battery range targets, that’s not good because it covers a mistake with an even bigger one….Ford buyers prefer big boxy utilities and Ford knows that.

Edited February 10 by jpd80

[Oac98]

12 minutes ago, jpd80 said:

Remembering the whole reason why the three rows were transferred away from Cuautitlan was exactly because

of the anticipated production capacity required by Mach E……So, there’s that….

 

I just think Ford did not renew  OAC Edge / Nautilus as a way of eliminating internal competition with Mach E,

they gave it every chance but in th east twelve months, Mach E sales have nose dived globally.

 

The whole reason why Ford went so aero on the three row utility was because it has fallen behind on battery range targets, that’s not good because it covers a mistake with an even bigger one….Ford buyers prefer big boxy utilities and Ford knows that.

I agree with everything you said. The question is is what’s the solution to this mess?

[jpd80]

11 minutes ago, Oacjay98 said:

I agree with everything you said. The question is is what’s the solution to this mess?

That’s a tricky one and probably why Farley is not saying more than generalisations at the moment.

 

I honestly don’t know because if Ford is going to do more than delay programs, then changing things

costs a lot of money as well as explaining to Bill Ford and the board why everything is turning to crap

and how to fix it.

 

 

[Oac98]

18 minutes ago, jpd80 said:

Remembering the whole reason why the three rows were transferred away from Cuautitlan was exactly because

of the anticipated production capacity required by Mach E……So, there’s that….

 

I just think Ford did not renew  OAC Edge / Nautilus as a way of eliminating internal competition with Mach E,

they gave it every chance but in th east twelve months, Mach E sales have nose dived globally.

 

The whole reason why Ford went so aero on the three row utility was because it has fallen behind on battery range targets, that’s not good because it covers a mistake with an even bigger one….Ford buyers prefer big boxy utilities and Ford knows that.

Yet they decide to import the Nautilus, I thought cancelling it was a dumb move in the first place. They probably knew they were gonna import it. None of this EV crap will hit edge sales anytime soon. We’re still building this dinosaur and it’s selling more than the great Mach-e?

Edited February 10 by Oacjay98

[Oac98]

14 minutes ago, jpd80 said:

That’s a tricky one and probably why Farley is not saying more than generalisations at the moment.

 

I honestly don’t know because if Ford is going to do more than delay programs, then changing things

costs a lot of money as well as explaining to Bill Ford and the board why everything is turning to crap

and how to fix it.

 

 

I’m very interested to hear the outcome of this situation. It still looks like as of now this retool at OAC is still happening. Contractors have been here doing prep work for months before the major demolition starts inside. 

Edited February 10 by Oacjay98

[Oac98]

15 minutes ago, jpd80 said:

That’s a tricky one and probably why Farley is not saying more than generalisations at the moment.

 

I honestly don’t know because if Ford is going to do more than delay programs, then changing things

costs a lot of money as well as explaining to Bill Ford and the board why everything is turning to crap

and how to fix it.

 

 

Farley and his multimillionaire brain trust will hopefully navigate themselves out of this successfully. 

[Dequindre]

23 minutes ago, jpd80 said:

Remembering the whole reason why the three rows were transferred away from Cuautitlan was exactly because

of the anticipated production capacity required by Mach E……So, there’s that….

 

I just think Ford did not renew  OAC Edge / Nautilus as a way of eliminating internal competition with Mach E,

they gave it every chance but in th east twelve months, Mach E sales have nose dived globally.

In China, Mache sells in the hundreds, has done so for over a year because Ford disappointed Chinese buyers with delivery delays (important because of China’s registration deadline windows)

 

The whole reason why Ford went so aero on the three row utility was because it has fallen behind on battery range targets, that’s not good because it covers a mistake with an even bigger one….Ford buyers prefer big boxy utilities and Ford knows that.

 

If that is truly the case (and it seems to be based upon the Mach-e's current challenges), then I think it would be  hard for Ford to justify dedicating an entire plant to these mystery vehicles.

[jpd80]

23 minutes ago, Oacjay98 said:

I’m very interested to hear the outcome of this situation. It still looks like as of now this retool at OAC is still happening. Contractors have been here doing prep work for months before the major demolition starts inside. 

Exactly, Ford Is probably obliged to continue with the transformation of the plant unless it wants

to spend a ton tearing up all of its plans. That’s the thing, changes cost a bomb and take time,

maybe time developing other vehicles  that Ford doesn’t have….

 

and yes, importing the C2 Nautilus that China paid for but no Edge developed there,

I mean, it wouldn’t be all that hard to import  the Evos as a new Edge…

20 minutes ago, Dequindre said:

 

If that is truly the case (and it seems to be based upon the Mach-e's current challenges), then I think it would be  hard for Ford to justify dedicating an entire plant to these mystery vehicles.

To be fair to Ford, this was an evolving situation that really turned bad during last year and I doubt that Ford

could then uproot plans and send the three row utilities back to Cuautitlan without being ridiculed….

 

Seriously, if there a way to snatch defeat from the jaws of victory, Ford will find it.

Edited February 10 by jpd80

[ExplorerDude]

So much is changing at a fairly rapid pace. I’m hearing that most EVs have been put on indefinite hold except for the next gen “Lightning” and the 7-seater Ford/Lincoln EVs for OAC.