DETROIT – Ford Motor is delaying production of a next-generation all-electric pickup truck at a new plant in Tennessee and canceling plans for a three-row electric SUV, the company said Wednesday.
Instead, Ford said it will prioritize the development of hybrid models, as well as electric commercial vehicles such as a new electric commercial van in 2026, followed by two EV pickup trucks in 2027.
The pickups are expected to be a full-size truck, which will be produced in 2027 at the Tennessee plant that’s currently under construction, and a new midsize truck being developed by a specialized “skunkworks” team in California.
“As we’ve learned in the marketplace, and we’ve seen where people have gravitated, we’re going to focus in where we have competitive advantage, and that’s on commercial land trucks and SUVs,” Ford CFO John Lawler said Wednesday.
The actions are meant to better deliver a capital-efficient, profitable electric vehicle business, said Lawler, who also serves as vice chair of the automaker. But, in the short term, they will cost the company.
Ford said it will incur a special noncash charge of about $400 million for the write-down of certain product-specific manufacturing assets, including the cancellation of the three-row SUV.
Ford Mustang Mach-E and F-150 Lightning on display at the New York International Auto Show on March 28, 2024.
Danielle DeVries | CNBC
The company said the changes may also result in additional expenses and cash expenditures of up to $1.5 billion. Ford will reflect those in the quarter in which they are incurred, as a special item.
Lawler said the company’s future capital expenditure plans will shift from spending about 40% on all-electric vehicles to spending 30%. He did not give a timeline for the change.
Vehicle production at the new $5.6 billion Tennessee site was initially expected to begin next year. The company said it still expects to start battery cell production at the site in 2025.
The changes are the latest for Ford and come amid slower-than-expected adoption of EVs as well as automakers not being able to profitably produce the vehicles.
The new plans come roughly five months after Ford said it would delay production of the three-row SUV and next-generation pickup, codenamed “T3.”
“This is really about us being nimble and listening to responses from our customers,” Lawler said during a call Wednesday morning. “We’ve been out in the [EV] market here for over two years, and we’ve learned a lot, and what we’re understanding is that customers want more electrification choices.”
The rollout of Ford’s next generation of EVs will begin with a commercial van that will be assembled at Ford’s Ohio Assembly Plant starting in 2026, according to the company.
The automaker previously said it would not launch a vehicle if there wasn’t a clear path to profitability within the first year. It was a change from selling EVs at a loss to grow share and assist in meeting fuel and emissions standards.
Ford said it will continue to produce and update its current all-electric vehicles such as the Ford Mustang Mach-E crossover and F-150 Lightning pickup truck.
The company said it plans to provide investors with an “update on electrification, technology, profitability and capital requirements” in the first half of 2025.
