Ford Motor Delays EV Pickup Production and Cancels Electric SUV to Focus on Hybrids and Commercial Vehicles

Ford Motor Delays EV Pickup Production and Cancels Electric SUV to Focus on Hybrids and Commercial Vehicles

Key Points:

  • Ford Motor is delaying the production of a next-gen all-electric pickup truck and canceling plans for a three-row electric SUV.
  • The company is shifting focus to hybrid models and electric commercial vehicles, including a new van and two EV pickups by 2027.
  • Due to these changes, Ford expects a $400 million non-cash charge and up to $1.5 billion in additional expenses.
  • Despite delays, Ford will continue producing and updating its existing electric vehicles, such as the Mustang Mach-E and F-150 Lightning.

On Wednesday, Ford Motor Company announced significant changes to its electric vehicle (EV) strategy. These included delaying the production of a next-generation all-electric pickup truck at its new Tennessee plant and canceling plans for a three-row electric SUV. The automaker is shifting its focus toward hybrid models and electric commercial vehicles, such as a new electric van set for 2026 and two EV pickup trucks planned for 2027.

The full-size electric pickup truck will be produced at the Tennessee plant, which is currently under construction, while a specialized team in California is developing a new midsize truck. “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 Motor CFO John Lawler.

This strategic shift aims to create a more capital-efficient and profitable EV business. However, in the short term, the changes will have financial repercussions. Ford anticipates a non-cash charge of approximately $400 million for the write-down of product-specific manufacturing assets, including the canceled three-row SUV. The company may also face additional expenses and cash expenditures of up to $1.5 billion, which will be reflected in future financial reports.

Ford Motor’s future capital expenditure plans will now allocate 30% of spending to all-electric vehicles, down from the previous 40%. The company did not provide a timeline for this adjustment. Despite these changes, vehicle production at the $5.6 billion Tennessee site is still expected to begin next year, with battery cell production slated to start in 2025.

These revisions come amid slower-than-anticipated EV adoption and challenges in producing these vehicles profitably. The new strategy follows Ford’s decision five months ago to delay the production of the three-row SUV and the next-generation pickup truck, codenamed “T3.”

Ford’s next wave of EVs will commence with the launch of a commercial van at its Ohio Assembly Plant in 2026. Meanwhile, the company will continue producing and updating its current EV models, including the Mustang Mach-E crossover and F-150 Lightning pickup truck.

EDITORIAL TEAM
EDITORIAL TEAM
TechGolly editorial team led by Al Mahmud Al Mamun. He worked as an Editor-in-Chief at a world-leading professional research Magazine. Rasel Hossain and Enamul Kabir are supporting as Managing Editor. Our team is intercorporate with technologists, researchers, and technology writers. We have substantial knowledge and background in Information Technology (IT), Artificial Intelligence (AI), and Embedded Technology.

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