Ford Motor is recalibrating its electric vehicle (EV) strategy, making significant changes to its future lineup in response to slower-than-expected EV market growth. The automaker has decided to cancel its plans for a three-row electric SUV and postpone the launch of its next-generation electric pickup truck. Instead, Ford is introducing a new pickup and van to its lineup, as it adjusts to evolving market conditions.
As part of this strategic shift, Ford will incur a special non-cash charge of approximately $400 million to write down assets related to the abandoned three-row SUV plans. This decision could also lead to additional expenses and cash outlays of up to $1.5 billion. The broader slowdown in EV demand has prompted major automakers, including Ford and General Motors, to delay or abandon certain plans to avoid investing heavily in vehicles that are not meeting consumer expectations at the anticipated rate.
Ford CEO Jim Farley has highlighted the company's California-based team’s development of new architecture for affordable EVs. This initiative aims to bring a mid-size electric pickup to market by 2027, reflecting the company’s focus on reducing costs without compromising on quality. "The work of this highly talented team has evolved into a critical enabler of our electric vehicle strategy. These electric vehicles will be lower cost, and not compromised in any way," Farley stated.
Ford's stock saw a 1.4% increase in premarket trading following the announcement. The company is also planning to introduce an electric commercial van at its Ohio Assembly plant, with production starting in 2026. This move aligns with Ford’s strategy to leverage its success in the gas-engine commercial vehicle sector.
In related news, the long-awaited successor to Ford's F-150 Lightning electric truck will be delayed until the second half of 2027, a shift from the previously scheduled 2025 launch. This postponement will enable Ford to incorporate lower-cost battery technology into the vehicle. While the three-row electric SUV plans are being shelved, Ford is pivoting towards hybrid vehicles for that segment, aiming to attract customers seeking longer-range options for road trips.
(Source:www.theglobeandmail.com)
As part of this strategic shift, Ford will incur a special non-cash charge of approximately $400 million to write down assets related to the abandoned three-row SUV plans. This decision could also lead to additional expenses and cash outlays of up to $1.5 billion. The broader slowdown in EV demand has prompted major automakers, including Ford and General Motors, to delay or abandon certain plans to avoid investing heavily in vehicles that are not meeting consumer expectations at the anticipated rate.
Ford CEO Jim Farley has highlighted the company's California-based team’s development of new architecture for affordable EVs. This initiative aims to bring a mid-size electric pickup to market by 2027, reflecting the company’s focus on reducing costs without compromising on quality. "The work of this highly talented team has evolved into a critical enabler of our electric vehicle strategy. These electric vehicles will be lower cost, and not compromised in any way," Farley stated.
Ford's stock saw a 1.4% increase in premarket trading following the announcement. The company is also planning to introduce an electric commercial van at its Ohio Assembly plant, with production starting in 2026. This move aligns with Ford’s strategy to leverage its success in the gas-engine commercial vehicle sector.
In related news, the long-awaited successor to Ford's F-150 Lightning electric truck will be delayed until the second half of 2027, a shift from the previously scheduled 2025 launch. This postponement will enable Ford to incorporate lower-cost battery technology into the vehicle. While the three-row electric SUV plans are being shelved, Ford is pivoting towards hybrid vehicles for that segment, aiming to attract customers seeking longer-range options for road trips.
(Source:www.theglobeandmail.com)
