Ford Abandons Electric SUV Project, Postpones Upcoming Truck Launch
Ford Shifts Gears in Electric Vehicle Strategy
Ford Motor Company has announced changes in its electric vehicle (EV) strategy, with a focus on hybrid technologies and affordability.
The American automaker reported a profit of $2.6 billion for the quarter, an increase of 7% year over year, with its Blue division, which includes internal combustion engine vehicles, reporting a profit of $1.2 billion in Q2. However, the company's electric vehicle division, Model e, reported a loss of $1.1 billion in the same period.
In an effort to streamline its EV production, Ford has decided to stop producing an electric three-row SUV and instead pursue hybrid technologies for its next three-row SUVs. This decision will result in a $400 million write-down for manufacturing assets.
Ford is accelerating its battery production efforts, with an emphasis on affordability. The BlueOval SK joint venture, which will produce cells for Ford's EVs, will have two production facilities: BlueOval City in Tennessee and the Kentucky 1 plant. The Kentucky 1 plant will begin manufacturing cells for Ford's E-Transit van with enhanced range and F-150 Lightning starting mid-2025, while the BlueOval City facility will produce cells starting in late 2025 for Ford's new electric commercial van.
Ford's skunkworks team, led by CEO Jim Farley, has been working on a new, lower-cost EV platform. The launch of Ford's next-generation electric truck has been delayed until the second half of 2027, but the company will instead focus its electrification efforts on a "digitally advanced" commercial van, which will be assembled at the company's Ohio Assembly Plant in 2026.
The work of this team is a critical enabler of Ford's electric vehicle strategy. The company will provide an update on its electrification, technology, profitability, and capital requirements in the first half of 2025.
In addition to these changes, Ford plans to launch a mid-sized electric pickup truck in 2027 and will debut a new platform for lower-cost EVs. The delay and shift to hybrids may result in additional expenses and cash expenditures of up to $1.5 billion.
Despite these challenges, Ford remains committed to its EV future. The name of the digitally enhanced truck planned by Ford Motor Co. for 2026 is the Ford F-750, and it is manufactured in the United States. The company's electric vehicle division is expected to play a significant role in Ford's long-term success.
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