Home Tech Ford Revises EV Strategy, Cancels Electric SUV and Delays Next-Gen Truck

Ford Revises EV Strategy, Cancels Electric SUV and Delays Next-Gen Truck

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Ford Revises EV Strategy, Cancels Electric SUV and Delays Next-Gen Truck

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In a significant overhaul of its electric vehicle (EV) plans, Ford has announced the cancellation of its electric three-row SUV project. Initially delayed until 2027, the vehicle has now been scrapped entirely, with the company opting to focus on hybrid technology for its next three-row SUVs. This decision is expected to result in special charges and expenses of up to $1.9 billion.

Additionally, Ford has pushed back the launch of its next-generation electric truck from 2026 to the second half of 2027. The new model will build upon the success of the F-150 Lightning, featuring improved aerodynamics and enhanced bi-directional charging capabilities. By delaying the electric pickup’s rollout, Ford aims to take advantage of lower-cost battery technology and other cost efficiencies. The vehicle will be produced at a Tennessee plant.

Ford is also developing a medium-sized electric pickup, the first production vehicle to utilize a lower-cost platform designed by a skunkworks team. Scheduled for release in 2027, this model is expected to be profitable, thanks in part to the new platform. This could help Ford compete with Chinese EV manufacturers, which benefit from lower-cost supply chains. However, the US has imposed a 100 percent tariff on imported EVs from China, which the White House claims will protect American manufacturers.

Meanwhile, Ford plans to start producing a new electric commercial van in Ohio in 2026. A Tennessee factory will begin manufacturing cells for the van and the next-gen electric pickup in late 2025.

This strategic shift comes as Ford seeks to mitigate losses on its current EV models and ensure future electric vehicles are profitable. The company’s EV division is projected to lose $5 billion this year, up from a $4.7 billion loss in 2023, due to lower-than-expected demand. As a result, Ford is reducing its capital spending on EVs from 40 percent of its budget to 30 percent.

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