Ford and GM abandoned electric cars

Ford and GM abandoned electric cars

March 27, 2020 0 By autotimesnews

The production plans of the two American concerns exclusively include pickups and SUVs, not electric cars.

According to Reuters, in accordance with the production plans received by the publication, two automakers from Detroit do not plan to part with their profitable SUVs and pickups, although they promised that in the future they will release more electric vehicles. In total, Ford and GM plan to produce 5 million SUVs and pickups in 2026, while creating a total of 320 thousand electric vehicles. At the same time, Tesla alone collected more than 365 thousand electric cars last year. According to the production plans of GM and Ford, after 6 years, electric vehicles will account for only 5% of the total sales of two concerns.

Plans diverge from future electrification goals that the two automakers touted as their future path. Last fall, GM CEO Mary Barra said that in the near future the company plans to sell 1 million electric cars a year. The company announced that by 2023 20 new electric vehicles will appear on the market, and by 2025 the concern will invest $ 20 billion in electric and autonomous technologies. Ford CEO Jim Hackett said his company plans to develop 40 new all-electric and hybrid cars, spending $ 11 billion by 2022.

    In the last decade, SUVs and pickups accounted for most of the volume of cars sold by GM and Ford, which was facilitated, in particular, by lower fuel prices. Both companies shifted their resources from compact cars to larger vehicles: GM reduced production of the Chevrolet Cruze, Volt and Impala, as well as Buick LaCrosse, while Ford dropped the Taurus, Fusion, and Fiesta models.

Industry data reviewed by Reuters says US SUV production will increase 8-fold by 2026 compared to passenger cars, with 93% of SUVs running on gasoline.