Automobile manufacturers continue to kill small cars even though they still regret it in the end

The electric vehicle revolution has hit a roadblock. Sure, Sales are technically increasing, but they did not increase as quickly as expected. Automakers like it Ford To be big loss on every car sold at a total loss of billions of dollars – and now, The Verge reports that Ford is starting to wonder if perhaps it should bet on smaller, more affordable cars instead of expensive electric SUVs.

To be clear, Ford is not alone in this. Mercedes Chief Financial Officer Harald Wilhelm called the electric vehicle market a “brutal space” after the luxury automaker reported a profit and revenue decline in the third quarter of 2023 because of electric vehicles. GM EV loss report worth $1.7 billion at the beginning of the year. Things looking up for the American brand, but it still lost money as part of the industry-wide reckoning.

However, Ford stands out from the competition. Company Give decision ARRIVE stop car production returned for 2018 and promptly dropped the Fiesta, Focus, Fusion and Taurus from the North American lineup. If it was affordable, had four doors, and wasn’t a truck or SUV, Ford wouldn’t want to make it. A few years later, the company announced it would venture into the electric vehicle field with billions of dollars in investment. Not long after that, the company launched the product Mustang Mach-E And F-150 Lightningis one of the hottest cars on the market in the early 2020s.

But now, market reality has caught up with the company. Betting on expensive trucks and electric vehicles instead of small cars has resulted in billions of dollars in losses, as well as The Verge detail:

The company reported its first-quarter earnings last night, and boy, have things been tough. Ford said it lost $1.3 billion on sales of 10,000 electric vehicles in the first three months of the year – a staggering $130,000 per electric vehicle sold.

Even Ford’s “Model e” technology division reported an 84% drop in revenue. While the company’s electric vehicle business is bleeding, sales of large trucks and SUVs are helping keep it afloat; the company reported Escape, Explorer, Expedition and Bronco sales of just under 217,000 units, 15% higher than 2023 sales.

The company is currently relying less, may pay Electric vehicles are its future, something it should have done from the start. Ford is working on new battery technology, and there’s a group of “skunkworks” in Silicon Valley that are dreaming up new, small electric cars but can’t launch them anytime soon. Ford CEO Jim Farley said these low-cost electric vehicles will be designed for city living. “We believe that is where electric vehicle adoption will grow fastest,” he say. “And we believe we can compete in the small car and vehicle segments, the more affordable vehicles in the unique way that is Ford.” All we can say is: good luck.