Ford Motor Co.
On Wednesday, the auto giant said it was doing away with plans for a large electric SUV and it would take a $1.9 billion write-down on the move as it adjusts to lower-than-expected demand for EVs.
The Dearborn, Michigan-based company plans to instead make hybrid gas-electric versions of three-row SUVs for models that include Explorer and Expedition, the Wall Street Journal reported.
Ford also held off on launching a new electric pickup truck by a year, until 2027, and said it would reduce capital expenditures on EVs to about 30% of its budget.
Ford's decisions to pull back on EVs has impacted Magna International Inc.
In late July, General Motors Co
GM Chief Executive Mary Barra said in a call with analysts that GM is holding back on investments to make sure the company does not overshoot demand.
On Tuesday, Stellantis NV
Stellantis agreed to build a new $3.2 billion EV battery plant, invest $1.5 billion in Belvidere to build new mid-size trucks by 2027 and a $100 million parts distribution center in 2024.
The UAW said it planned to file grievances over the delay and may hold a nationwide strike on the grounds Stellantis failed to honor production commitments.
Stellantis declined to disclose any new timetable for reopening the factory on Tuesday.
In July, the U.S. Department of Energy said it planned to award Stellantis $334.8 million to convert the shuttered Belvidere plant to build electric vehicles and $250 million to convert its Indiana Transmission Plant in Kokomo, Indiana, to produce EV components.
Price Action: Ford saw a modest gain on Thursday, but other automakers pulling back on EVs and companies that produce automobile parts fell by the closing bell.
- Ford gained 0.65% to $10.92
- General Motors slipped 0.21% to $46.46
- Stellantis declined 1.57% to $16.30
- Magna International dropped 0.85% to $41.05
