Ford announced a delay in the production of its next-generation all-electric pickup truck at a new Tennessee plant and canceled plans for a three-row electric SUV.
The company will instead focus on hybrid models and electric commercial vehicles, including a new electric van in 2026 and two electric pickups in 2027. One pickup will be a full-size truck produced at the Tennessee plant, while a midsize truck is being developed in California.
Ford CFO John Lawler cited the need to concentrate on areas where the company has a competitive advantage, particularly in commercial vehicles. The strategic shift will incur a $400 million noncash charge due to the write-down of assets, along with up to $1.5 billion in additional expenses.
“As we’ve learned in the marketplace, and we’ve seen where people have gravitated, we’re going to focus in where we have competitive advantage, and that’s on commercial land trucks and SUVs,” said Lawler said Wednesday, according to CNBC.
“This is really about us being nimble and listening to responses from our customers,” Lawler said. “We’ve been out in the [EV] market here for over two years, and we’ve learned a lot, and what we’re understanding is that customers want more electrification choices.”
Ford’s Q2 earnings last month revealed it lost $1.1 billion on its EVs.
Despite the changes, Ford will continue producing its current electric models, like the Mustang Mach-E and F-150 Lightning. The company plans to provide an update on its electrification strategy in the first half of 2025.
