Ford Motor Company announced a significant shift in its electric vehicle (EV) strategy, choosing to cancel its plans for an all-electric three-row SUV and delaying the release of a full-size EV pickup.
Instead, Ford will focus on launching an all-electric commercial van in 2026, followed by a more affordable mid-sized EV pickup and the previously planned full-size pickup in 2027.
This represents a delay of about 18 months. The decision aligns with Ford’s broader goal of transforming into a more profitable and capital-efficient company by focusing on vehicles that are likely to be profitable in the current market.
The decision to scrap the all-electric three-row SUV came after Ford concluded that the vehicle wouldn’t be profitable within its first year. Instead, the company will produce a hybrid version, reflecting customer preferences for long-range travel vehicles with more electrification options.
Ford’s financial chief, John Lawler, emphasized that the company’s strategy is guided by market demand and profitability, leading to tough decisions like this pivot.
This shift in strategy will come with financial costs for Ford. The company expects to incur a non-cash charge of about $400 million for the write-down of specific manufacturing assets related to the canceled projects.
Additionally, Ford anticipates further expenses and cash outlays of up to $1.5 billion as a result of these changes. The move also reflects a broader trend among automakers, who are adjusting their EV strategies in response to the slower-than-expected adoption of electric vehicles in the U.S. market.
As part of its broader strategy adjustment, Ford plans to reduce its capital expenditures on pure EVs from about 40% to 30%. Despite this reduction, Ford will continue to offer its current EV lineup, including the F-150 Lightning, Mustang Mach-E, and its commercial vans.
These models had initially performed well, but challenges in bringing the next generation of EVs to market—such as pricing pressures, EV politicization, and technical difficulties—have prompted Ford to reassess its approach.
Ford’s revised EV rollout will now begin with a commercial van produced in Ohio starting in 2026, followed by a more affordable midsized EV pickup, which will be built on a new platform.
A key aspect of Ford’s strategy to make EVs more affordable involves the production of lithium iron phosphate batteries, set to begin in 2026 at a new facility in Michigan. Additionally, Ford plans to move some of its Mustang Mach-E battery production from Poland to Michigan in 2025, which will help the company and its customers qualify for U.S. tax credits under the Inflation Reduction Act.
