The demand for electric vehicles is not meeting the projected forecast from auto manufacturers, and Ford is one company cutting back on EV production in favor of internal combustion engine (ICE) vehicles, according to
The New York Times.
What's happening?
While the company still plans to make EVs more broadly, Ford Motor Company announced plans to shift production at its Oakville, Ontario factory in Canada from electric sports vehicles to gas-powered pickup trucks. The news came shortly after
General Motors announced it would trim down its forecast of EVs produced in 2024 by 50,000.
The appearance at this stage is that both legacy automakers are worrying about overproducing against demand.
"After the pandemic, there was a huge exuberance around EVs, and I think a lot of the manufacturers thought that growth was going to continue,"
Arun Kumar, a partner and managing director in the automotive and industrial practice at AlixPartners, told the Times. "But the reality is that's not the case, and it's a smart move to make sure you're not losing market share in internal combustion."
Other companies and states are trying to find ways to promote buying electric vehicles to keep them cheaper and to avoid the issues associated with public charging stations.
autos.yahoo.com