Ford Boosts F-Series Truck Production as EV Market Slows

Ford is set to invest approximately $3 billion to ramp up production of its F-Series trucks, shifting some of the manufacturing to a Canadian plant that was initially designated for electric vehicle (EV) production. This strategic move comes as Ford, alongside other automakers, adjusts to a decelerated EV market, the company announced on Thursday.

The investment will channel $2.3 billion into increasing output for the F-Series Super Duty trucks—larger than the popular F-150 model—at a facility in Ontario, Canada. The remaining funds will be directed towards enhancing production at supporting facilities across the U.S. and Canada. Prior to this investment, Ford’s Super Duty trucks were exclusively produced at plants in Ohio and Kentucky. The newly expanded Ontario facility is expected to manufacture around 100,000 trucks annually. This expansion is also poised to create approximately 400 new jobs at the Ontario site and an additional 150 positions at a nearby engine manufacturing plant.

Ford had initially intended to produce three-row electric SUVs at the Ontario plant beginning in 2025 but has postponed this plan until 2027. Despite this delay, Ford remains dedicated to growing its EV business and developing profitable electric vehicles. The production of the three-row electric SUVs will be relocated to another, yet-to-be-specified plant.

Ford’s electric vehicle segment is facing significant financial challenges. The company projected losses between $5 billion and $5.5 billion for its EV business, as reported in February. For the year 2023, Ford recorded a $4.7 billion loss, attributing it to an “extremely competitive pricing environment.” Earlier this year, Ford CEO Jim Farley mentioned that the company was “reassessing” its approach to the electric vehicle market. According to Goldman Sachs, the slowdown in EV sales can be attributed to several factors, including uncertainty over the upcoming presidential election, reduced prices for used vehicles, a shortage of charging infrastructure, and increased hybrid vehicle sales. Concerns over electric vehicle range also contribute to the market’s sluggishness.

Ford had previously announced plans to scale up its electric vehicle production to an estimated 2 million units globally by the end of 2026. However, as of the first quarter, the company reported a $1.3 billion loss from its EV segment, which equates to about $132,000 per vehicle, alongside a 20% decline in EV sales compared to the same period last year. In response to these financial strains, Farley indicated that Ford might delay the launch of the next generation of electric vehicles until they can achieve profitability.

This shift in strategy comes as other major players in the EV market also adjust their plans. Tesla, for instance, announced price cuts for some of its models following a drop in deliveries. Similarly, BYD, a China-based electric vehicle manufacturer, has lowered prices to stay competitive with offerings from Toyota, Volkswagen, and Nissan. General Motors has also announced a reduction in its electric vehicle production, cutting back by up to 50,000 units in North America due to diminished demand. Ford’s latest move underscores a broader trend within the automotive industry as manufacturers recalibrate their strategies in response to evolving market conditions and consumer preferences. While the electric vehicle market faces headwinds, Ford’s increased focus on its traditional F-Series truck lineup highlights the company’s efforts to balance its portfolio and adapt to the current economic landscape.