Ford Writes Off $1.9bn as It Cancels All-Electric Large SUV Plans in the US
Ford's Strategic Pivot: Canceling All-Electric Large SUV
Ford has recently written off $1.9bn after deciding to cancel plans for an all-electric large SUV in the US market. Instead, they are shifting their focus to a hybrid version, driven by rising concerns over profitability in the competitive electric vehicle market.
Profitability Concerns and Competition
The automaker revealed on Wednesday that it couldn't achieve profitability on the electric SUV within its target timeframe. This decision underscores the significant pressure posed by Chinese EV manufacturers, which has prompted Western carmakers to reassess their electric vehicle strategies.
Implications for the EV Market
- Initial write-off of $400m for tooling costs.
- Anticipated future costs of $1.5bn due to cancellation.
- A larger trend of Western companies facing challenges in profitability for electric vehicles.
For further insights and detailed analysis, stay tuned for updates.
This article was prepared using information from open sources in accordance with the principles of Ethical Policy. The editorial team is not responsible for absolute accuracy, as it relies on data from the sources referenced.