Ford's EV investment plans face delay amid demand challenges

Ford is delaying $12 billion in planned investments on electric vehicles (EVs) due to softening demand for higher-priced premium EVs. While overall profitability remains strong, Ford's EV business has experienced losses, with a $1.3 billion loss reported in the third quarter. The company aims to reduce the sticker price on EVs and achieve cost parity with internal combustion engine vehicles. Ford is shifting production and adjusting capacity to match market demand and is prioritizing cost competitiveness over additional features. The automaker has also delayed the construction of a second battery plant with SK On and is evaluating adjustments to its Battery Park Michigan plant. Ford's guidance for 2023 is pending ratification of the agreement reached with the United Auto Workers union.