Ford Delays New Electric Truck to 2027 and Cancels SUV

Ford Motor Company has announced a significant shift in its electric vehicle (EV) strategy, canceling plans for a three-row electric SUV and delaying the production of a next-generation all-electric pickup truck at a new plant in Tennessee. This decision comes as the automaker grapples with declining demand for electric vehicles, prompting a reduction in its EV investment from 40% to 30% of its annual budget. Instead, Ford will concentrate on developing hybrid models and electric commercial vehicles, including a new electric van set to launch in 2026. The Tennessee plant, which is still under construction, was initially slated to begin production next year. However, Ford's Chief Financial Officer, John Lawler, indicated that the company will now prioritize areas where it holds a competitive advantage, particularly in commercial trucks and SUVs. The shift is expected to incur additional expenses of up to $1.5 billion, which will be reflected in the company's financial statements as special items. Despite the pullback, Ford's EV business continues to grow, with the F-150 Lightning being the best-selling electric truck in the U.S. However, consumer interest in EVs is waning, with rising concerns over costs and battery range. This trend mirrors challenges faced by other EV manufacturers, including Tesla, which reported a 45% drop in profits in the second quarter due to decreased demand. Ford plans to provide further updates on its electrification strategy and profitability in the first half of 2025, as it navigates the evolving landscape of the automotive market.