Ford Shifts Strategy: Delays New EV Plant and Cancels Three-Row SUV to Focus on Hybrid and Commercial Electric Vehicles
Ford Motor Company is recalibrating its electric vehicle (EV) strategy, announcing significant shifts in its production plans. The automaker revealed that it will delay the launch of a next-generation all-electric pickup truck at its under-construction Tennessee plant and has scrapped plans for a three-row electric SUV. Instead, Ford will prioritize developing hybrid models and commercial EVs, including a new electric commercial van slated for 2026, followed by two EV pickup trucks in 2027.
The new strategy reflects Ford’s response to market demands and customer preferences. “As we’ve learned in the marketplace, and we’ve seen where people have gravitated, we’re going to focus in where we have a competitive advantage, and that’s on commercial land trucks and SUVs,” said Ford CFO John Lawler.
The delay in the electric pickup truck’s production and the cancellation of the three-row SUV comes with financial consequences. Ford expects to incur a non-cash charge of approximately $400 million due to the write-down of specific manufacturing assets. Additionally, the company anticipates up to $1.5 billion in additional expenses and cash outflows, which will be reflected as special items in future financial reports.
Despite these setbacks, Ford’s long-term EV strategy remains robust. The company is committed to launching its next-generation EVs, starting with a commercial van that will be produced at its Ohio Assembly Plant in 2026. Following that, Ford plans to introduce a full-size EV truck at the Tennessee plant and a midsize truck developed by a specialized team in California, both expected by 2027.
Ford’s shift towards hybrids and commercial EVs signals a strategic pivot aimed at capital efficiency and profitability. The company has learned valuable lessons from its two-year experience in the EV market, leading to a focus on offering customers more electrification choices. This includes continuing production and updates to its current all-electric models, such as the Ford Mustang Mach-E and the F-150 Lightning.
Ford plans to provide investors with an in-depth update on its electrification, technology advancements, profitability, and capital requirements in the first half of 2025. This update will be crucial as the company navigates the evolving automotive landscape and strives to maintain its competitive edge in the rapidly growing EV market.
