Ford will delay approximately $12 billion in EV investment as consumers become more hesitant.

• Customers in North America are not willing to pay a premium for an EV, according to Ford.
• The company is delaying $12 billion in EV manufacturing investment.
• This year, through three quarters, Ford's Model e EV unit incurred a loss of approximately $3.1 billion.

According to a report released on Thursday, a significant number of customers in North America are no longer willing to pay a premium price for an electric vehicle compared to an internal-combustion or hybrid vehicle.

The planned spending on new EV manufacturing capacity is being delayed by approximately $12 billion.

Ford's plans to increase production of EVs have been hindered by customers' unwillingness to pay more for them, despite the growing sales of EVs in the industry.

Ford executives clarified that the company will not reduce its investments in future electric vehicle models, but it will increase its EV manufacturing capacity and spending on that capacity at a slower pace than initially planned.

CFO John Lawler stated in a media briefing on Thursday that although the company is not abandoning its second-generation EV products, it is examining the rate of capacity installation and may delay some investment.

Ford will postpone approximately $12 billion in planned spending on manufacturing capacity for EVs, except for the construction of Blue Oval City, which will proceed as originally planned.

Ford is able to balance the production of gas, hybrid, and electric vehicles to match the speed of EV adoption in a way that others cannot.

Despite a 26% increase in revenue, Ford Model e, the electric-vehicle business unit of Ford, lost $1.3 billion on an operating basis in the third quarter, which is roughly double its year-ago loss.

In the first three quarters of 2023, Model e recorded an operating loss of approximately $3.1 billion, in line with Ford's earlier forecast of a full-year operating loss of $4.5 billion for the Model e business unit.

The United Auto Workers labor union reached a tentative deal with Ford, resulting in the withdrawal of all 2023 guidance by the company on Thursday.