this post was submitted on 21 Aug 2024
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Electric Vehicles

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Ford has written off $1.9bn as it cancelled plans for an all-electric large SUV in the US, opting to produce a hybrid version instead in the latest sign of western carmakers struggling to make profitable electric cars.

The US carmaker said on Wednesday that it would not be able to reach a profit on the electric SUV within a year, its measure of whether a new car is viable, citing the stiff competition from Chinese manufacturers. It will initially write off the cost of $400m (£300m) in tooling for the vehicle, plus another $1.5bn (£1.15bn) in extra costs in the future.

Ford also said it would delay the successor to its F-150 Lightning electric pickup truck until 2027, after initially targeting a launch next year.

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[–] [email protected] 89 points 2 months ago (6 children)

The Ford boss, Jim Farley, said the decision to produce fewer electric cars in favour of hybrids “gives our customers maximum choice and plays to our strengths”.

how does producing fewer options result in more choice, let alone "maximum" choice?

i feel like corporations are just throwing around "customer choice" as a justification for literally everything they do, regardless of how much "choice" is actually involved--same bullshit as tax-funded vouchers for private jesus schools

[–] [email protected] 38 points 2 months ago

short term profit that will result in long term market loss.

[–] [email protected] 11 points 2 months ago (1 children)

They are maximising choice by creating a new lowest rung on the ladder of choices. Now you can buy something good, or buy a Ford!

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[–] [email protected] 6 points 2 months ago (1 children)

They are the customer of future “too big to fail” government bailouts, and they are choosing to get more free money.

[–] [email protected] 4 points 2 months ago

socialize losses, privatize profit

[–] [email protected] 6 points 2 months ago

We will produce only one of this item, giving our customers infinite choices, which again means unlimited profits!

[–] [email protected] 4 points 2 months ago

I swear I lmao when I first heard they were getting rid of so many cars. It was so obvious they were cutting their own throat.

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[–] [email protected] 66 points 2 months ago (3 children)

You know what blows my mind? Ford actually made an inexpensive small truck, and they couldn't keep them in stock. It flew off the shelves so fast pre-orders were taking almost a year to produce.

They turn around and then make an almost 6 figure electric version of the f150, then wonder why they didn't sell.

Make an affordable electric vehicle, and you won't have a single problem selling them. It's not this fucking hard! Imagining how far the oil industry is up the asses of car manufacturers is a real scary thought.

[–] [email protected] 18 points 2 months ago

They turn around and then make an almost 6 figure electric version of the f150, then wonder why they didn’t sell.

I remember when they first revealed the price as around $40k. At that price, there was a lot of demand. I don't know if they underestimated expenses or they got greedy with the covid pump in prices, but it's obvious that price is one of the biggest factors affecting demand. Ultimately, EVs should be cheaper to produce than internal combustion vehicles because there are far fewer parts involved.

[–] [email protected] 14 points 2 months ago (1 children)

A barebones ("work truck"?) electric Maverick would be wonderful.

[–] [email protected] 16 points 2 months ago (3 children)

💯💯 Just a basic electric poverty spec truck with roll up windows, and a dot matrix radio 260 miles of range, and 150kW charging We don't need all this smart crap just own the fact that you're old hat

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[–] [email protected] 3 points 2 months ago

Higher profit margin. They'd rather sell 1 truck at a $50,000 profit than 50,000 trucks with a $2000/ea profit.

[–] [email protected] 54 points 2 months ago (3 children)

Maybe stop making giant, fucking monstrosities of vehicles and focus on humanely-sized ones. I'd love to buy a Ford EV (my Fusion Hybrid has been a dream), but I do not want some grotesquely oversized monster truck or SUV (or their butt ugly crossover designs).

Every time I see one of those ridiculous bus-sized SUVs, I think of that scene from Borat where he asks the lady about it, she says it's so her baby has room, and he's like "must be huge baby!"

[–] [email protected] 26 points 2 months ago

Time for this image again:

[–] [email protected] 5 points 2 months ago* (last edited 2 months ago) (1 children)

~~So~~Do you have the plug in version of the fusion or the regular hybrid? The 20mi electric only range isn't great, but the extra oomph on the electric motor is really nice in the city.

[–] [email protected] 3 points 2 months ago (8 children)

Regular. I kick myself every day for not buying the Energi (the plug-in version). At the time, I didn't have anywhere to charge it. A year later, I bought a house where I could charge it easily.

The 20 mile range would cover all of my daily driving (though it's advertised as closer to 30 or 35 i thought)

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[–] [email protected] 4 points 2 months ago

Unfortunately, you aren't the US car market. Oversized trucks and cross-over SUVs sell. The top 3 vehicles in 2023 were:

  1. Ford F-150
  2. Chevy Silverado
  3. Dodge Ram

The rest of the list is littered with trucks and cross-over SUVs. Though a couple Tesla vehicles make the list and do quite respectably (The Model Y is at #5). It's no surprise that US manufacturers are targeting large vehicles. That's what US consumers want. And sure, there are lots of arguments to be made against land-yachts. But, it made sense that Ford targeted large vehicles for EV sales. If they can get people to accept the F-150 Lightning, that could really move the needle on EV sales and help them scale up. Expecting customers to both buy-in to a newer technology and make radical changes in their buying habits, is a recipe for failure. Though, it also seems that Ford is managing to fail despite chasing consumer trends.

[–] [email protected] 36 points 2 months ago

"My arm cannot reach the high shelf, so I will cut it off."

[–] [email protected] 33 points 2 months ago (2 children)

If they can't produce EVs profitably, Tesla and BYD will. They're destroying their future in the name of short term profits.

[–] [email protected] 21 points 2 months ago (1 children)

Hyundai now sells more EVs than Ford (both in the US).

GM, Rivian, BMW and Volkswagen are the next competitors.

[–] [email protected] 7 points 2 months ago* (last edited 2 months ago) (1 children)

I'll assume Hyundai are producing EVs profitably. All the others most certainly aren't. All the incumbents and most of the startups are facing huge challenges in that regard.

[–] [email protected] 8 points 2 months ago

BMW seems to do pretty well and is now selling ~20% EVs:

Once considered a laggard, the German luxury carmaker is one of only a few established automakers that has been able to compete effectively against Tesla. - source: nytimes

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[–] [email protected] 21 points 2 months ago (1 children)

How do you get through a billion dollars before realising the product is not viable?

[–] [email protected] 15 points 2 months ago

Easy.

Announce new models to rule the world

Pat self on back and give bonuses to all executives

Cancel project

Pat self on back for saving billions more and give even more bonuses to executives for being amazing.

[–] [email protected] 19 points 2 months ago (1 children)

Oh no, no profit within a year. That’s like forever in corporate land.

[–] [email protected] 4 points 2 months ago

Somebody will need to be held accountable.

[–] [email protected] 14 points 2 months ago

That’s ridiculous. The Ioniq 5 is a hit seller and just got picked as Car and Driver car of the year, so there’s definitely demand for an SUV EV.

[–] [email protected] 11 points 2 months ago (1 children)

Ford has written off $1.9bn as it cancelled plans for simpler version in the US, opting to produce a version with both an ICE and batteries instead

It makes no sense

[–] [email protected] 8 points 2 months ago

Same company that decided to stop making cars and only make trucks a few years ago. Their leadership has no idea how to do anything except sell oversized gas guzzlers to morons.

[–] [email protected] 7 points 2 months ago (1 children)

Guess I won't be buying a Ford. If they won't produce the cars I want I have to go elsewhere. Keeping my 1999 on the road is getting expensive, but I see no other option. (though my ebike covers about 90% of my needs, that last 10% isn't much so cheap is important)

[–] [email protected] 6 points 2 months ago (1 children)

Yeah so if you drive a 99 I'm pretty sure it's not an issue with the cars manufacturers are producing right now.

[–] [email protected] 3 points 2 months ago

Well it is 25 xears old an has many age related issues. It could ose a replacemenc but the options are lacking so I'm rapairing it

[–] [email protected] 7 points 2 months ago

That's okay, car companies like Honda and Subaru already have one. Nobody needs a Ford.

[–] [email protected] 7 points 2 months ago (1 children)

'written off'

So they get a tax break for it?

[–] [email protected] 8 points 2 months ago (1 children)

I mean, is a expense and no revenue, you only pay taxes when you make money

[–] [email protected] 2 points 2 months ago (1 children)

Ahh. I thought there might be some sort of incentive like how Warner bros axed a fully finished movie because they could use the write off

[–] [email protected] 2 points 2 months ago (1 children)

Even that was only worth doing because of special tax rules for when companies are sold.

[–] [email protected] 2 points 2 months ago

The fact that it's even remotely worth it is criminal (imo)

[–] [email protected] 7 points 2 months ago
[–] [email protected] 4 points 2 months ago

citing the stiff competition from Chinese manufacturers.

Sounds like a sore loser answer haha

[–] [email protected] 4 points 2 months ago (1 children)

Did someone say stock buybacks?

Currently large electric vehicles make 0 sense

Make all passenger cars electric and work trucks ICE till the battery tech becomes suitable. Require licence to buy/drive big fuck you trucks and fine anyone who isn't using one for work.

[–] [email protected] 5 points 2 months ago (16 children)

Car and Driver picked the Ioniq 5 N as car of the year. It’s an SUV EV with 624hp. The non-N model is a hit seller.

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[–] [email protected] 3 points 2 months ago

I'm just here to point out that a Ford Ranger today looks bigger than a F150 did a decade ago.

[–] [email protected] 3 points 2 months ago* (last edited 2 months ago)

I busted someone from a Ford distributor here in Australia talking shit on a Hyundai Facebook ad about EVs.

They're likely doing poorly because of the culture they've developed in their dealership network too

Unlike brands like Tesla, they're also not going all-in . They should start manufacturing batteries and other components for other applications

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