US carmakers are pausing plans to expand their electric vehicle manufacturing capacity, as consumers buy battery-powered cars and trucks at slower rates than expected.
Ford, General Motors and Tesla have all pumped the brakes on expanding EV production capacity in recent weeks. GM will delay building electrified versions of its Chevrolet Silverado and GMC Sierra pick-up trucks at a Michigan plant until 2025, instead of next year. Tesla chief executive Elon Musk said his company was studying macroeconomic conditions “before we go full tilt” to open a factory in Mexico.
Ford, which recorded a $1.3bn loss in its electric vehicle division in the third quarter, is now waiting to invest about $12bn to build out EV production capacity. That includes cutting some production of the Mustang Mach-E and delaying construction on one of two joint-venture battery plants planned in the state of Kentucky.