- Ford cancelled plans for a three-row electric SUV and shifted focus to hybrid models, delaying the production of its new EV plant in Tennessee.
- The company prioritises affordability and profitability, citing high EV production costs and increasing competition from Chinese automakers.
- Ford plans to release new electric pickups in 2027 while maintaining its current EV lineup through over-the-air updates and strategic battery production shifts.
Ford scrapped plans for its next electric vehicle, a three-row SUV, and shifted focus to hybrid models. The automaker also delayed production at its new EV plant in Tennessee, initially set to begin next year.
John Lawler, Ford’s Vice Chair and CFO, stated that the move reflects customer demand. “This is about being nimble and listening to customers,” Lawler told the Detroit Free Press. He added that consumers want more electrification options.
Ford made the tough decision to ensure long-term sustainability. The company determined that the three-row electric SUV wouldn’t achieve profitability in its first year. Instead, Ford will prioritise other vehicles, including an electric commercial van scheduled for 2026.
High costs drove this decision. EVs remain expensive for Ford to produce and for consumers to buy. Ford observed that today’s buyers are more cost-conscious and view EVs as a way to save on fuel and maintenance, with the added convenience of home charging.
Ford struggles to make EVs more affordable due to high battery costs and limited manufacturing scale, which gives Chinese competitors an edge. “An affordable EV starts with an affordable battery,” Ford said. “You need competitive battery costs to stay competitive.”
With this shift, Ford won’t release a new passenger EV until 2027. At that point, the company plans to launch two electric pickups. One of these trucks will come from Ford’s “Skunkworks” team, formed in 2022 to develop a more cost-effective EV platform. Ford CEO Jim Farley emphasised the importance of this team, saying, “Their work is critical to our EV strategy. These vehicles will have lower costs without compromise.”
In the meantime, Ford’s limited EV lineup, including the F-150 Lightning and Mustang Mach-E, will rely on over-the-air updates for new features. The company will move battery production for the Mach-E from Poland to Holland, Michigan, in 2025, allowing buyers to qualify for the federal tax credit.
Ford’s exit from the three-row electric SUV market leaves competitors like the Kia EV9, Rivian R1S, and Volkswagen ID. Buzz to fill the gap. However, Ford believes its core customers—families who use three-row SUVs for long trips—prefer hybrids, eliminating frequent charging stops.
This strategic shift demonstrates Ford’s effort to balance consumer demand with the challenges of EV production. While the company delays new passenger EVs, it remains focused on creating more affordable options in the future. As the market evolves, Ford positions itself to stay competitive while addressing the financial realities of the electric vehicle industry.