Ford Motor announced on Wednesday that it is making significant changes to its electric vehicle (EV) production plans. The company is delaying the production of a next-generation all-electric pickup truck at its new plant in Tennessee and canceling plans for a three-row electric SUV. Instead, Ford will prioritize the development of hybrid models and electric commercial vehicles.
According to Ford CFO John Lawler, the company is focusing on areas where it has a competitive advantage, particularly in commercial trucks and SUVs. This decision is based on market demand and customer preferences, as Ford has observed a greater interest in commercial vehicles. Lawler stated that the company aims to deliver a capital-efficient and profitable electric vehicle business.
As part of these changes, Ford will incur a special non-cash charge of approximately $400 million for the write-down of certain manufacturing assets related to the canceled SUV. Additionally, the company expects to face additional expenses and cash expenditures of up to $1.5 billion. Lawler did not provide a specific timeline for the shift in capital expenditure plans from all-electric vehicles to spending 30%.
The Tennessee plant, which was initially expected to begin vehicle production next year, will now focus on producing a full-size electric truck in 2027. Additionally, a new midsize truck is being developed by a specialized team in California. Ford still plans to start battery cell production at the Tennessee site in 2025.
These changes reflect Ford’s response to the slower-than-expected adoption of EVs and the challenges automakers face in achieving profitability in this sector. Despite the shift in strategy, Ford will continue to produce and update its current all-electric vehicles, such as the Ford Mustang Mach-E crossover and F-150 Lightning pickup truck.
Ford’s new plans align with its commitment to launching EVs only if there is a clear path to profitability within the first year. This approach marks a departure from the company’s previous strategy of selling EVs at a loss to gain market share and meet fuel and emissions standards.
Looking ahead, Ford intends to provide investors with an update on electrification, technology, profitability, and capital requirements in the first half of 2025.
In summary, Ford’s decision to delay the production of an all-electric pickup truck and cancel a three-row electric SUV reflects its focus on hybrid models and electric commercial vehicles. These changes aim to align with market demand and prioritize areas where Ford has a competitive advantage. While the shift in strategy incurs short-term costs, the company aims to build a capital-efficient and profitable electric vehicle business. Ford will continue to produce and update its current lineup of all-electric vehicles and plans to provide investors with further updates on its electrification plans in the future.
 production. The company is delaying the production of an all-electric pickup truck and canceling a three-row electric SUV in favor of focusing on hybrid models and electric commercial vehicles. Ford aims to capitalize on its competitive advantage in commercial trucks and SUVs based on market demand and customer preferences. While incurring short-term costs, the company seeks to build a profitable and capital-efficient EV business. Read more about Ford's shift in strategy and its commitment to delivering updates on electrification plans in the future.){kind=link}