Ford to spend ₹1.77 lakh crore to cancel EV models; shift back to ICE, hybrid cars
In a shocking move, Ford has announced a massive $19.5-billion (approximately ₹1.77 lakh crore) charge on its electric-vehicle investments. This decision comes as a surprise to many, as the automotive industry has been shifting towards electric vehicles (EVs) in recent years. However, it seems that Ford is taking a step back from its EV ambitions, at least for the time being.
According to the company, about $8.5 billion of the charge is tied to costs associated with killing future EV models. This means that Ford has decided to cancel several EV models that were in the pipeline, which is a significant departure from its previous plans. The company had been investing heavily in EV technology and had announced plans to launch several new EV models in the coming years.
Another significant portion of the charge, about $6 billion, is tied to a now-cancelled battery operation joint venture (JV) with South Korea’s SK On. This JV was intended to produce battery cells for Ford’s EVs, but it seems that the company has decided to abandon this plan. The cancellation of this JV is a significant blow to Ford’s EV ambitions, as it would have provided the company with a reliable source of battery cells.
Perhaps the most surprising aspect of Ford’s announcement is the decision to convert its flagship electric truck-manufacturing factory in Tennessee to produce models with internal combustion engines (ICE) and hybrid engines. This factory was specifically designed to produce EVs, and the decision to convert it to produce ICE and hybrid vehicles is a significant shift in the company’s strategy.
So, what does this mean for the future of Ford’s EV plans? It seems that the company is taking a step back from its EV ambitions, at least for the time being. While Ford has not completely abandoned its EV plans, it is clear that the company is re-evaluating its strategy and prioritizing ICE and hybrid vehicles.
There are several reasons why Ford may have decided to shift its focus away from EVs. One possible reason is the high cost of developing and producing EVs. While EVs have been gaining popularity in recent years, they are still more expensive to produce than ICE vehicles. This is because EVs require specialized batteries and electric motors, which are costly to develop and manufacture.
Another possible reason for Ford’s decision is the lack of demand for EVs in certain markets. While EVs have been popular in some parts of the world, such as Europe and China, they have not been as popular in other markets, such as the United States. Ford may have decided that it is not worth investing in EVs if there is not enough demand for them.
Despite Ford’s decision to shift its focus away from EVs, it is unlikely that the company will completely abandon its EV plans. EVs are still seen as the future of the automotive industry, and most companies are investing heavily in EV technology. Ford will likely continue to develop and produce EVs, but it may do so at a slower pace than previously planned.
In conclusion, Ford’s decision to spend ₹1.77 lakh crore to cancel EV models and shift its focus back to ICE and hybrid cars is a significant shift in the company’s strategy. While this decision may seem surprising, it is likely a response to the high cost of developing and producing EVs, as well as the lack of demand for EVs in certain markets. However, it is unlikely that Ford will completely abandon its EV plans, and the company will likely continue to develop and produce EVs in the future.
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