In a major overhaul of its electric vehicle (EV) strategy, Ford Motor Company has announced the cancellation of its three-row electric SUV plan and postponed the launch of its next-generation all-electric pickup truck until 2027. Initially planned for a 2027 release, the three-row SUV has now been completely scrapped, and Ford has decided to shift its focus to new gas and hybrid-powered SUVs instead.
This strategic pivot is expected to cost the company around $1.5 billion, including a $400 million non-cash special charge. As part of the restructuring, Ford plans to reduce its EV investment from 40% to 30% of its annual capital expenditures.
The highly anticipated electric truck, named Project T3, will now face an 18-month production delay. Assembly at Ford’s Tennessee EV facility is now scheduled for the second half of 2027, rather than the originally planned 2025.
In addition to these changes, Ford plans to expedite the production of a new commercial electric van, set to end production at its Ohio plant in 2026. The automaker is also developing a more affordable electric vehicle, a mid-size pickup truck, at its Skunkworks lab in Irvine, California.
These strategic adjustments are aimed at addressing slower-than-expected EV adoption and the challenges of achieving profitability in the sector. Ford has reported substantial costs associated with ramping up EV production amid slowing industry-wide sales growth and expects a $5.5 billion loss in its EV division this year.
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