On May 13, TapTechNews reported that Ford has started cutting battery orders to alleviate financial pressure from its Modele electric cars.
Ford's strategic contraction includes cutting spending on electric vehicle models by $12 billion (approximately 868.8 billion RMB), delaying new electric cars, lowering prices, delaying and shrinking planned battery factories.
Ford's recent financial report shows that despite a 96.6% year-on-year increase in Ford's electric car sales in April, Ford currently loses about $130,000 (approximately 94.1 million RMB) for every electric car sold in its Modele project.
The reason for the huge losses is that Ford needs to spend hundreds of millions of dollars annually on developing electric cars, but the company's electric car sales are not performing well. Last year, the company lost $58,000 for every electric car sold, and this year's losses have doubled. Ford says that industry-wide price cuts are the main reason for these disappointing performances.
Ford CEO Jim Farley admitted that the market demands affordable electric cars, and Ford will offer such models in the next generation of products, promising that these models will be profitable.
According to TapTechNews' previous reports, Ford is considering shelving its plan to stop selling fossil fuel vehicles in Europe by 2030. Ford stated, As electric vehicle growth in Europe has slowed down, we believe it is necessary to continue providing our customers with internal combustion engine and hybrid vehicle options after 2030. The company is closely monitoring the situation and will make adjustments as needed.