Ford has reportedly reduced its orders for electric vehicle (EV) batteries as it grapples with significant losses on the technology and adjusts its electrification strategy.
Following Ford’s recent disclosure that its Model e EV unit was losing over $100,000 per EV sold, sources familiar with the matter stated in a Friday Bloomberg report that the automaker is scaling back its EV battery orders. The sources, who requested anonymity, indicated that Ford maintains partnerships with its battery suppliers, including SK On, LG Energy Solution, and Contemporary Amperex Technology Co. Ltd. (CATL).
The company is anticipating EV unit losses of up to $5.5 billion this year, as outlined in its Q1 2024 earnings call. CEO Jim Farley acknowledged that Model e “is the main drag on the whole company right now.”
These reductions are part of a broader strategy by Ford to trim its EV program in favor of gas and hybrid vehicles. This shift began with the announcement in October of a postponement of a roughly $12 billion EV investment. In April, Ford disclosed plans to delay the launch of a three-row EV and a next-generation electric pickup, despite achieving record-high EV sales.
Ford also halted all shipments of its F-150 Lightning in February, focusing instead on delivering gas versions of the truck to dealerships. The company also downsized its F-150 Lightning workforce by about two-thirds, providing affected workers with the option to be reassigned or to accept a voluntary retirement package. Ford resumed deliveries of the electric pickup in April and offered price cuts of $2,000 or more on many of the truck’s configurations.
