Ford Motor Co. is making significant changes to its electric vehicle strategy in response to increasing competition from automakers with lower costs. The company has announced that it will focus on developing two new electric pickup trucks and a new commercial van, all of which are expected to be more affordable, have longer range, and be profitable within a year of hitting the market.
One of the key changes in Ford’s strategy is the decision to delay production of its next-generation full-size electric pickup truck until 2027. This delay is necessary to ensure that the vehicle meets the company’s cost and performance targets. In addition, Ford has decided not to pursue fully electric three-row SUVs due to high battery costs, opting instead to focus on gas-electric hybrids for these vehicles.
The new lineup of electric vehicles from Ford will include a mid-sized pickup truck based on new underpinnings developed by a small team in California. This vehicle is expected to go on sale in 2027, along with the delayed full-size electric pickup truck. Production of a new commercial van will also begin in 2026 at an assembly plant west of Cleveland.
These changes will result in Ford taking a $400 million write-down on its current assets related to big electric SUVs, as well as additional expenses of up to $1.5 billion. Despite these costs, Chief Financial Officer John Lawler emphasized the company’s commitment to building a competitive and profitable business in the long term.
In order to streamline its electric vehicle development and improve profitability, Ford has announced that it will reduce capital spending on EVs. The company will now allocate 30% of its annual capital budget to EV development, down from the current 40%. This shift in spending reflects Ford’s focus on achieving a globally competitive cost structure while targeting profitable growth and capital efficiency.
The decision to prioritize electric pickup trucks and a commercial van aligns with Ford’s goal of meeting the evolving demands of the global EV market. With increasing competition from Chinese automakers and a growing number of cost-conscious consumers, Ford recognizes the need to adapt its strategy to remain competitive. By leveraging more affordable EV underpinnings for both commercial and consumer vehicles, Ford aims to expand its presence in the electric vehicle market.
Overall, Ford’s shift in electric vehicle strategy reflects the changing dynamics of the EV market and the company’s commitment to sustainable growth. With a focus on developing profitable electric vehicles that meet consumer needs, Ford is positioning itself for success in a rapidly evolving industry. More details about Ford’s new electric vehicle lineup are expected to be revealed at an event in the first half of next year.