Ford said: “The electric vehicle market is rapidly evolving as Chinese competitors leverage advantaged cost structures.
“In addition, today’s electric vehicle consumers are more cost-conscious than early adopters, looking to electric vehicles as a practical way to save money on fuel and maintenance, as well as time by charging at home.
“This, coupled with scores of new electric vehicle choices hitting the market over the next 12 months and rising compliance requirements, has amplified pricing pressures.”
John Lawler, Ford’s chief financial officer, said the changes would allow its newly-released vehicles to be profitable within 12 months. He added that the company’s spending on electric cars would be cut from 40pc of capital expenditure to 30pc.
Ford has pushed heavily into EVs in recent years, releasing the F-150 Lightning pickup truck and the Mustang Mach-E SUV.