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.