Ford's financial reports and official statements

Ford Cancels Electric SUV, Delays Pickup to 2027, Focuses on Hybrids, Faces $1.9B Cost

Aug 21, 2024, 12:52 PM

Ford Motor Co. is significantly altering its electric vehicle strategy by canceling plans for a fully electric three-row SUV and delaying the launch of its next-generation electric pickup truck to 2027. The company expects to incur up to $1.9 billion in costs related to these changes, including a $400 million non-cash charge for asset write-downs. This strategic shift comes as Ford aims to reduce its EV spending from 40% to 30% and focus more on hybrid technologies and electric commercial vehicles. The automaker plans to introduce a new low-cost mid-size electric pickup truck in 2027 and a commercial van in 2026. These moves are part of Ford's broader effort to reach more customers, improve profitability, and continue reducing CO2 emissions. Additionally, Ford's F-150 Lightning and Mustang Mach-E models have not been as profitable as expected, prompting a recalibration of its EV strategy. The company is also delaying the production of a new plant in Tennessee.