Ford’s decision to delay and slow down its electric vehicle production program in North America has led to projected losses of up to $1.5 billion. The American automaker announced this move on Wednesday, citing the need to focus on developing hybrid vehicles to ensure a profitable and efficient business model while offering consumers more options for lower CO₂ emissions vehicles.
One of the key changes Ford has made is the cancellation of a three-row electric SUV production project that was initially planned for the Oakville plant in Canada in 2025. This project was already delayed to 2027 earlier this year, and the cancellation is expected to cost the company $400 million initially, with the potential for the final cost to reach $1.5 billion, according to Ford’s CFO, John Lawler.
Additionally, Ford has pushed back the production of electric vehicles at a new plant being built in Tennessee to 2027. The plant, which represents a $5.6 billion investment, was supposed to start producing a new generation of electric pickup trucks in 2025. However, Ford has clarified that the plant will still begin battery production next year.
Ford highlighted the rapidly evolving electric vehicle market, noting that Chinese manufacturers are leveraging their cost structures to expand their global market share. As part of the new roadmap, Ford plans to start production of a new electric commercial van in Ohio in 2026 and two new electric pickup trucks in 2027.
One of these trucks, a midsize model, will be the first Ford vehicle to utilize a new platform aimed at reducing vehicle costs. The second truck, internally known as T3, is set to debut in the second half of 2027, building on the success of the current F-150 Lightning.
In terms of Ford’s Almussafes plant in Spain, the company has allocated the production of 300,000 units per year of a multi-energy vehicle, leading Ford to forgo incentives from the Strategic Project for the Recovery and Transformation of the Electric and Connected Vehicle (Perte VEC) program. The plant will also handle the production of 300,000 engines and the assembly of 300,000 batteries starting in the second half of 2027, as announced by the major union, UGT.
Ford’s decision to adjust its electrification timeline aligns with other major automakers‘ strategies. Mercedes has postponed its electrification plans to 2030, while Volkswagen announced last June that it would redirect a significant portion of its electric vehicle development budget towards improving internal combustion engines.
In conclusion, Ford’s shift towards hybrid vehicles and the reevaluation of its electric vehicle production timeline reflect the evolving landscape of the automotive industry. By adapting to market trends and consumer demands, Ford aims to ensure a sustainable and profitable future while continuing to innovate in the realm of electric and hybrid vehicles.