Ford, GM Production Focused on SUVs–Not EVs

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While several automakers in the United States are fortifying plans for electric vehicle production, Ford and General Motors appears to have something different in mind.

Based on production plans obtained by Reuters, the two major companies seem to be focusing on making more SUVs and pickups in the coming model years.

While both automakers have previously hinted at their intentions to join other companies in developing EVs, Ford and GM do not seem to be interested in parting ways with their current moneymakers.

The two are reportedly planning to build a combined five million SUVs and pickups in 2026 while producing just 320,000 electric vehicles. For comparison, Tesla built over 365,000 vehicles in 2019 alone.

With a target output of 320,000 units, Ford and GM are looking at allotting only 5 percent of their total production to EVs.

Car electrification is the new trend in the automotive world
Executives of each company said they didn’t want to exceed the demand for electric vehicles but they remain serious about launching more EVs in the future.

This somehow contradicts earlier pronouncements from both companies about their future electrifications plans.

Just last fall, GM CEO Mary Barra said that in the near future, the company is aiming to sell one million electric vehicles each year. GM also declared it will release no less than 20 new EVs in the market by 2023, spending at least $20 billion on electric and autonomous tech by 2025.

Ford CEO Jim Hackett, meanwhile, said the Blue Oval is looking to spend $11 billion by 2022 to develop 40 new full-electric and hybrid vehicles.

Over the past decade, SUVs and pickups were instrumental for both Ford and GM in terms of sales numbers, thanks to a steady decline in the price of gasoline. The two automakers also shifted their resources to the development of larger vehicles by ending their production of passenger cars such as GM’s Chevrolet Cruze and Ford’s Fiesta.

Asked about the production plans, executives of each company told Reuters they didn’t want to exceed the demand for electric vehicles but they remain serious about launching more EVs in the future.

It remains to be seen how the two companies intend to pursue their electrifications plans in the next few years.

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