Ford has announced the cancellation of its electric three-row SUV and the delay of its highly anticipated futuristic electric truck, signaling a strategic shift in its approach to vehicle electrification. The company will now focus on expanding its range of electrification options, including an increased emphasis on hybrid vehicles.
Shifting Focus to Hybrid and Gas-Powered SUVs
Initially planned for a 2027 release, the three-row electric SUV, which was set to be similar to the Ford Expedition, has been scrapped. Ford will instead concentrate on developing new gas and hybrid-powered three-row SUVs. This decision comes as Ford adjusts its strategy to ensure that new electric vehicle (EV) models are profitable within their first year of launch.
Ford also announced that it will not introduce any new electric vehicles until it achieves this profitability milestone. In the interim, the company is prioritizing the production of a new commercial electric van, set to begin in Ohio in 2026.
The automaker’s EV division, which includes models like the Mustang Mach-E, F-150 Lightning, and E-Transit van, has been struggling financially, with a reported loss of $1.3 billion in the first quarter of 2024 and $1.1 billion in the second quarter. These financial challenges, coupled with a general slowdown in EV sales growth across the industry, have led Ford to reduce its capital spending on EVs from 40 percent to 30 percent.
The Impact of Cancelled Projects
The canceled electric SUV project could result in a potential cost of $1.5 billion in expenses for Ford, along with a special non-cash charge of $400 million. Despite these setbacks, Ford’s skunkworks labs continue to work on a more affordable electric vehicle, with the first model expected to be a midsize electric truck.
Additionally, Ford is planning to add hybrid powertrain options to its next-generation Super Duty pickup trucks, following the success of the hybrid F-150. The launch of the successor to the F-150 Lightning, known as the T3 truck, has also been delayed to late 2027. This truck is expected to feature advanced aerodynamics and upgraded bi-directional charging capabilities, offering features never before seen in a Ford truck.
Featured Image courtesy of Matt Cardy/Getty Images
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