Ford Motor Company, 1 of the leading American car manufacturers, announced crucial changes in its business strategy, including partial withdrawal of production in Poland and modification of plans for electrical cars. These changes consequence from a slight interest in these vehicles on the market.
Transfer of battery production
Ford informed about the decision to transfer part of the production of batteries from Poland to the United States. So far batteries have been produced in cooperation with South Korean partner, LG Energy Solution, in Poland. But now they will be produced in Holland, Michigan.
This decision is justified by the request to reduce production costs and the usage of US subsidies under the IRA. The transfer of production aims to increase Ford's profitability and competitiveness in the US market.
Changes in the strategy for electrical cars
Ford resigned any of his earlier plans to make the electrical car segment. The company decided not to marketplace an electrical SUV with 3 rows of seats and postponed the launch of the fresh electrical version of its most popular pickup, F-150. The reason for these changes is lower than the expected interest in electrical vehicles.
As a result, Ford reduces yearly investment in electrical vehicles from 40% to 30%. At the same time, the company plans to increase investments in hybrid vehicles, especially in the SUV segment. specified a decision is simply a consequence to the increasing popularity of this technology among consumers who see it as a more cost-effective and better alternate to electrical cars.
Adjustment to changing marketplace conditions
Ford was forced to adapt his strategy to changing marketplace conditions and consumer demand. These decisions uncover the crucial fact about the marketplace in electrical vehicles – their popularity mostly depends on artificial stimulants alternatively than on natural demand.
Despite intense promotions, many subsidies, taxation incentives and beneficial changes in the law favouring electrical cars, their interest remains limited. It can be concluded that, had it not been for state support, "in the name of combating global warming", the electrical section of vehicles would have been even smaller in the automotive market.
Conclusion
The changes to Ford's strategy indicate the request to respond flexibly to changing consumer preferences and marketplace conditions. The company decided to focus its resources on segments that show greater growth possible and better profitability. In the context of increasing competition and changing regulations, Ford's approach may be crucial for his future success in the global automotive market.
Daniel Głogowski
Expert in his field – Publicist, author and social activist. The first articles were published in 1999 for global publishers. For more than 30 years, he has gained his experience through cooperation with the largest editorial offices. In his articles, he seeks to address controversial topics and present first viewpoints that allowed for a deeper knowing of the issues discussed.
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Ford Motor Company partially withdraws business from Poland and changes plans for electrical cars
