Saturday, July 13, 2024
NewsFord is Working on an Electric Three-Row SUV

Ford is Working on an Electric Three-Row SUV

Ford is working on a three-row electric crossover and electric commercial vehicles in order to stand out from other EV makers.

  • Ford says the market for two-row EV crossovers is saturated.

  • The company wants to distinguish itself in segments where EVs are less common.

  • Ford has lost almost twice as much money on EVs in Q1 2023 as in Q1 2022, but says it will get better soon.

With more and more automakers launching two-row electric SUVs and crossovers, Ford says that it will have to target new market segments to distinguish itself.

This is because the company believes there will be around 45 five-seater electric SUVs offered to North American buyers by 2025.

In order to stand out in the market, Ford will put more effort into products such as electric three-row SUVs and commercial vehicles.

Few details are known about these future vehicles for the moment, but the company says its experience building gasoline-powered models for these markets will give it an advantage over competitors that are just now entering the scene.

As it did with the Mustang Mach-E and the F-150 Lightning, Ford hopes to attract new buyers with its upcoming seven-seater SUV, meaning both people who have never owned a three-row crossover before and those who have never owned a Ford vehicle previously.

At the moment, the automaker has seen a drop in sales that led to its electric Model E division losing $700 million in the first three months of the year, compared to losses of $400 million during the same period in 2022.

Ford says the lower sales of the Mustang Mach-E are the result of an overhaul of the Mexican factory that produces the electric SUV, which will now be able to increase its production rate.

While these losses are significant and likely to continue for a while (Ford expects to lose $3 billion on EVs this year alone), the company is not worried since its combustion-powered vehicles have already generated $1,8 billion in profits this year.

In addition, the second generation of EVs that is currently under development at Ford is said to provide better cost structures via a number of changes, including Tesla-style castings.

In the near future, the company wants to increase Mach-E sales by cutting its price like Tesla has been doing with the Model Y. Like its rival, Ford used in-car software to determine which features drivers use the least in its vehicles.

By removing these characteristics, the brand’s CEO says up to $5,000 per vehicle could be saved in material costs.

Source: Autocar

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