...now if you just look at the % change here, you can easily jump into conclusion that Ford is doing well on the EV front.
....when you look at the details, you can see that the 61% EV growth in second quarter comes on the back of a very low base, while its growth is higher than hybrids, Ford sold 9k+ more EVs compared to 19k+ hybrids and EVs just make up 4.4% of total vehicles sold in the same quarter.
....it had announced dialing back its EV model rollouts by 1-2 years after having incurred huge losses on EVs, deciding instead to time the market when it has stronger appetite for EVs.
....in the US, the demand for EVs has momentarily plateaued, it is not what you (and EV aficionados) might want to believe that faltering EV demand is just right wing media narrative.
....watch what the US EV makers are doing - Ford is dialing back EVs, GM likewise and both choosing to focus on hybrids in the interim, while Tesla is about to launch their Robotaxi focus on Aug 8. None of their actions suggest that they have much confidence in EV growth in the short term despite having commitment in the longer term.
....that is conclusive enough that EV demand and accordingly lithium demand outside of China is not going to kick goals in 2024-25, US market analysts are not going to be too enthused about the sector over that timeframe, and what we see is a gradual disinterest unfolding in the EV/lithium sector and stocks as a result, which is only more likely to grow more pronouncedly if and when a Trump presidency becomes a reality.
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Results coming in now from @Ford - their overall US car sales were up 1% YoY, but EV sales were up 61% YoY (outpacing hybrids at 56%). Ford sold around 24,000 EVs in the quarter, outpacing @GM slightly (by about 2k units).
Ford (F) is dialing back its next-generation EV rollout, trying to better time the market as it spreads out its capital investments. Meanwhile, the Dearborn, Mich.-based automaker will expand its popular hybrid offerings.
Ford delays next-gen EV offerings as it pushes further into hybrids
Pras Subramanian
·Senior Reporter
5 April 2024
Ford said today it is pushing back EV production at its massive BlueOval City EV campus in Tennessee to 2026 from its initial 2025 start date. Ford said installation of equipment is underway at BlueOval City, where the company intends to build its next-generation electric truck, most likely its Project T3 full-size EV pickup that will replace the current F-150 Lightning.
Ford also revealed it is “retiming” the launch of upcoming EVs at its plant in Oakville, Ontario, where it plans to build next-generation three-row EVs, most likely a full-size SUV. The company is aiming to launch those vehicles in 2027, pushing back the original 2025 timeline. Ford also said construction at its BlueOval SK JV battery plants in Tennessee and Kentucky is “progressing,” as well as at its BlueOval Battery Park in Michigan, construction of which had also been delayed last year.
Finally, Ford said its Ohio assembly plant would build a new commercial EV, with tooling installation set to begin in spring 2025.
“As the No. 2 EV brand in the US for the past two years, we are committed to scaling a profitable EV business, using capital wisely and bringing to market the right gas, hybrid, and fully electric vehicles at the right time,” Ford CEO Jim Farley said in a statement.
Ford’s hybrid sales have been booming, with sales hitting a record in Q1. Ford said it will expand its EV offerings, with hybrid powertrains now expected across its entire product range by 2030.
With hybrid sales surging and EV sales requiring big incentives at the dealer level, Ford’s decision to push back EV launches at these facilities was not unexpected. The company also said late last year that it would "push out" $12 billion in EV investments for when that capacity is needed.
“These [new EV] initiatives support the development of a differentiated and profitably growing EV business over time while Ford serves customers with the right mix of gas, hybrid and electric vehicles based on demand today,” the company said.
While Ford revamps its EV plans and pushes out investments, EV spending for the year will still be massive. For 2024, Ford is projecting the Model e EV unit to record an EBIT loss of $5 billion to $5.5 billion — indicating wider losses in the business unit compared to 2023.
Electric vehicles face reality check as automakers dial back production targets
The tentative deals that brought an end to the 6-week strike by the United Auto Workers could bring collective bargaining power to workers at new electric battery plants jointly owned by the automakers. But the deals could also make electric vehicles even less profitable for the companies at a time when sales aren’t quite going as planned.
“A lot of the projections that automakers talked about were pretty optimistic,” he said.
And now, many are dialing them back. GM is scrapping its target of producing about half a million new EVs by the middle of next year, Ford extended its timeline to hit a goal of 600,000 EVs a year, and even Tesla sees demand softening.
General Motors claimed that it is “all-in on electric vehicles” for years, but today, CEO Mary Barra confirmed that the automaker is changing strategy and going back to plug-in hybrids amid setback in its electric car plans.
It continued selling some plung-in hybrids in other markets, but not in North America, which it saw going all-electric.
The automaker was expected to ride the sucess of the Chevy Bolt EV, its first all-electric vehicle, but it has had issues executing on its plan.
GM built its new Ultium EV platform, but the first few EVs it launched using the platform have yet to achieve signifcant production and delivery volumes while the Bolt EV/EUV, the only one with significant volumes, have been retired – for now at least.
Now, CEO Mary Barra is even announcing that GM plans to bring back plug-in hybrid options. She announced on GM’s latest earnings call today:
Our forward plans include bringing our plug-in hybrid technology to select vehicles in North America. Let me be clear, GM remains committed to eliminating tailpipe emissions from our light-duty vehicles by 2035. But in the interim, deploying plug-in technology in strategic segments will deliver some of the environmental benefits of EVs as the nation continues to build its charging infrastructure. We are timing the launches to help us comply with the more stringent fuel economy and tailpipe emission standards that are being proposed.
She didn’t elaborate on the plan in terms of volumes or specific model to receive a plug-in option, but her comment about the technology existing on specific programs in other markets, especially China, could point to using the same models.
