· 2 min read
illuminem summarizes for you the essential news of the day. Read the full piece on The Washington Post or enjoy below:
🗞️ Driving the news: Ford has announced a strategic pivot from focusing solely on electric vehicles (EVs) to investing more in hybrid technology
• This shift comes as the automaker's EV division faces financial losses, and Ford plans to reduce its capital expenditure on all-electric vehicles
🔭 The context: The company is responding to consumer concerns over EV infrastructure and affordability, which have slowed EV adoption
• Despite these changes, Ford will still produce some new all-electric models, including an electric commercial van in 2026 and additional electric pickups, though other EV projects are delayed
🌍 Why it matters for the planet: This move could slow progress toward President Biden's goal for EVs to make up half of new car sales by 2030, impacting the broader push for decarbonization in the automotive sector
• It also reflects the broader industry challenge of making EVs both affordable and profitable
⏭️ What's next: Ford anticipates taking a $400 million write-down and may face up to $1.9 billion in additional expenses as it retools its strategy
• The outcome of upcoming elections and federal policies on EV subsidies will further influence the company's direction
💬 One quote: "If these vehicles are not profitable based on where the customer is, we will pivot and adjust and make those tough decisions," said John Lawler, Ford's Chief Financial Officer
📈 One stat: Sales of Ford’s hybrid vehicles increased by 34% in Q2 2024 compared to the same period in 2023
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