Ford Motor Co. recently announced significant changes to its electric vehicle (EV) lineup, including cutting capital expenditures in EVs, delaying the launch of its next-generation all-electric pickup truck, and altering plans for a forthcoming three-row SUV to be hybrid instead of all-electric. These decisions come as EV sales are growing, albeit at a slower rate than anticipated, due to consumer hesitancy in adopting alternative powertrains.
The Dearborn automaker stated that the new launch schedule will allow it to introduce vehicles that are profitable within the first year, incorporate advancements in battery technology, and ensure compliance with regulatory greenhouse gas emissions and fuel economy standards. Chief Financial Officer John Lawler emphasized the company’s commitment to building a competitive and profitable business, stating, „With pricing and margin compression, we’ve made the decision to adjust our product and technology roadmap and industrial footprint to meet our goal of reaching positive operating income within the first 12 months of launch for all new models.“
As a result of these changes, Ford’s annual capital expenditures dedicated to pure electric vehicles will decrease to 30% from approximately 40%. This adjustment aligns with Ford’s previously announced plan to reduce or delay $12 billion in EV spending. Lawler confirmed these moves during a conference call, emphasizing their consistency with the company’s strategic objectives.
Ford revealed its plans to introduce a new commercial van in 2026 at its Ohio Assembly Plant, without specifying the vehicle’s size. Additionally, the company announced the launch of two all-electric pickups in 2027: a medium-sized truck developed by its California teams and the next-generation F-Series truck at the new Tennessee Electric Vehicle Center. The full-size truck, codenamed „Project T3,“ is postponed by 18 months.
Furthermore, Ford decided to cancel the all-electric three-row SUV in favor of launching it as a hybrid. This shift in strategy will result in a special non-cash charge of approximately $400 million for the write-down of certain product-specific manufacturing assets. The company anticipates additional expenses and cash expenditures of up to $1.5 billion, which will be reflected in future financial quarters as a special item.
Ford also provided updates on its EV battery sourcing, including moving Mustang Mach-E battery production to Michigan from Poland to qualify for benefits under the Inflation Reduction Act. The automaker’s joint venture with SK On Inc. in Kentucky will manufacture cells for the E-Transit and F-150 Lightning truck starting in mid-2025, leading to cost improvements ahead of schedule.
Despite the delay in truck production at the BlueOval City site in Tennessee, Ford plans to produce cells for its new electric commercial van at the facility starting in late 2025. The site will also manufacture cells for the next-generation electric truck and future electrified vehicles. Additionally, the production of lithium-iron-phosphate batteries in Michigan remains on track to launch in 2026, contributing to cost benefits from the Inflation Reduction Act.
Ford CEO Jim Farley emphasized the importance of competitive battery costs for affordable EVs, stating, „An affordable electric vehicle starts with an affordable battery.“ These strategic shifts and investments in battery technology reflect Ford’s commitment to innovation and sustainability in the rapidly evolving automotive industry.