Ford has announced significant shifts in its electric vehicle (EV) strategy, marking a departure from its earlier aggressive EV rollout plans. The automaker is pivoting away from plans to produce a fully electric three-row SUV and delaying the launch of its next-generation all-electric pickup truck, originally slated for production next year, until 2027.
Instead, Ford is prioritizing the development of hybrid models and commercial electric vehicles.
Shift From Electric SUVs to Hybrid Models
Ford’s decision to cancel its planned three-row electric SUV comes as a response to its analysis that the model would not be profitable within the first year of its launch. This pivot reflects a broader industry trend, as automakers like Ford recalibrate their EV strategies in the face of slower-than-expected adoption and high production costs.
John Lawler, Ford’s Vice Chair and Chief Financial Officer, emphasized the importance of profitability in the company’s decision-making process. “If they’re not profitable, based on where the customer is in the market, we will pivot and adjust and make those tough decisions,” Lawler stated during a press briefing.
In place of the electric SUV, Ford will now focus on producing hybrid versions of its three-row SUVs, which the company says aligns with customer preferences for vehicles that offer both electrification and the reliability of internal combustion engines, particularly for long-range travel.
Delays in Electric Pickup Production
Another significant change in Ford’s EV strategy is the delay in launching its full-size electric pickup truck. Initially expected to begin production in Tennessee next year, the launch has been pushed back to 2027. This delay, approximately 18 months longer than initially planned, will give Ford time to further refine the truck’s development, incorporate cost-saving technologies, with the goal of launching the truck with improved market conditions.
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The pickup truck, part of Ford’s “Project T3,” is expected to introduce innovative features and advanced aerodynamics, building on the lessons learned from the F-150 Lightning. Despite the delay, Ford remains committed to the truck’s production at its new Tennessee plant, which will also start producing battery cells in 2025.
Prioritizing Commercial Electric Vehicles
As part of its revised strategy, Ford is doubling down on its commercial vehicle department. The company plans to introduce a new all-electric commercial van in 2026, which will be assembled at Ford’s Ohio Assembly Plant.
Addressing Battery Costs and Sourcing
Ford’s strategy adjustments also include a realignment of its battery sourcing plans to reduce costs and maximize efficiency. The company aims to begin production of lithium iron phosphate (LFP) batteries at its Michigan facility in 2026, positioning it as the first automaker-backed LFP battery plant in the U.S. This shift is expected to significantly lower battery costs, a critical factor in making EVs more affordable and competitive in the market.
Additionally, Ford plans to move some Mustang Mach-E battery production from Poland to Michigan in 2025 to qualify for tax credits under the U.S. Inflation Reduction Act.
