After $12 billion in losses, Ford shifts electric vehicle strategy

Ford Motor Co., once seen as a serious challenger to Tesla in the electric vehicle market, is overhauling its EV strategy after steep losses and slowing sales.

The automaker said Monday (August 11) it has developed new, lower-cost electric vehicle components that will underpin more affordable models. The first will be a medium-size, four-door electric pickup set to debut in 2027.

A planned large electric pickup will be delayed a year to 2028. Ford also announced a new manufacturing process aimed at cutting costs and improving quality, New York Times reported.

“To be fully competitive, we felt we needed to start with a clean sheet,” said Jim Baumbick, Ford’s vice president of advanced product development.

The changes come after Ford’s electric vehicle unit lost $12 billion over the past two and a half years, including $2.2 billion in the first half of 2025. Sales of its electric models, the Mustang Mach-E SUV, the F-150 Lightning pickup and an electric van, fell 12 per cent in the first six months of the year.

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Ford had appeared to gain an edge over other traditional automakers when it launched those three models between 2021 and 2022. But slowing EV demand, aggressive price cuts by Tesla and higher material costs have squeezed profits across the industry.

Turning the EV business around is a priority for CEO Jim Farley, who took over in 2020 pledging growth and profitability. Ford’s European operations and China joint ventures have improved under his leadership, and the company has exited unprofitable markets such as India.

Still, the automaker continues to face challenges, including the money-losing EV division and billions spent in recent years on recalls and repairs for gasoline-powered vehicles.