Ford to delay all-electric SUV, truck to focus on offering hybrid vehicles across its lineup by 2030

DETROIT
–


Ford
Motor
is
delaying
production
of
a
new
all-electric
large
SUV
and
pickup
truck,
as
it
shifts
to
offer
hybrid
options
across
its
entire
North
American
lineup
by
2030.

The
Detroit
automaker

on
Thursday
said
it
will
continue
to
invest
in
EVs,
but
it
is
postponing
production
of
the
three-row
SUV
at
a
plant
in
Canada
to
2027
from
its
initial
plan
of
2025.
The
next-generation
pickup,
codenamed “T3,”
is
being
pushed
back
from
late
2025
to
2026.

The
shift
in
EV
plans
is
the
latest
for
Ford
and
the
entire
automotive
industry
as
adoption
has
been

slower
than
many
expected
and
production
costs
remain
high.

Ford
last
year
said
it
would

delay
or
cancel
$12
billion
in
planned
spending
on
new
EVs
due
to
the
shifting
market
conditions
as
well
as
challenges
to
profitably
building
and
selling
the
vehicles.

The
Ford
brand
ranked
second
in
EV
sales
during
the
first
quarter
of
this
year
behind
Tesla,
but
the
Detroit
automaker
as
a
company
ranked
third
overall.
Both
Tesla
and


Hyundai,
including
Kia
and
Genesis,
outsold
Ford
in
EVs.

“As
the
No.
2
EV
brand
in
the
U.S.
for
the
past
two
years,
we
are
committed
to
scaling
a
profitable
EV
business,
using
capital
wisely
and
bringing
to
market
the
right
gas,
hybrid
and
fully
electric
vehicles
at
the
right
time,”
Ford
CEO
Jim
Farley
said
Thursday
in
a
statement.

The
Ford
brand
ranked
second
in
EV
sales
behind


Tesla
but
the
Detroit
automaker
as
a
company
ranked
third
in
EV
sales
during
the
first
quarter
or
this
year.
Both
Tesla
and
Hyundai,
including
Kia
and
Genesis
brands,
outsold
Ford
in
EVs.

The
three-row
SUV
was
part
of

a
roughly
$1.3
billion
investment
to
transition
Ford’s
Oakville
Assembly
Plant
in
Ontario,
Canada,
into
a
new
electric
vehicle
hub.
It
was
supposed
to
be
Ford’s
first
time
completely
retooling
a
North
American
facility
producing
gas-powered
vehicles
into
one
that
manufactures
EVs.

“The
additional
time
will
allow
for
the
consumer
market
for
three-row
EVs
to
further
develop
and
enable
Ford
to
take
advantage
of
emerging
battery
technology,
with
the
goal
to
provide
customers
increased
durability
and
better
value,”
the
company
said

in
a
release.

Ford
said
it
will
continue
to
focus
its
EV
efforts
on
new
plants
such
as
its “BlueOval
City”
campus
in
Tennessee
rather
than
transitioning
current
facilities
producing
engine-powered
vehicles
to
all-electric
models.

“Our
breakthrough,
next-generation
EVs
will
be
new
from
the
ground
up
and
fully
software
enabled,
with
ever-improving
digital
experiences
and
a
multitude
of
potential
services,”
Farley
said.

The
automaker
said
the
massive
Tennessee
facility,
which
was
part
of

an
$11.4
billion
investment
announced
in
2021,
will
begin
production
of
Ford’s
next-generation
all-electric
truck
in
2026
rather
than
2025.

Ford
said
it
is
continuing
construction
of
battery
plants
in
Michigan,
Tennessee
and
Kentucky.

In
the
first
quarter
of
2024,
Ford’s
electric
vehicle
sales
increased
by
86%
from
subdued
levels
a
year
earlier.
Hybrid
sales
for
the
automaker
rose
42%
year
over
year,
while
sales
of
Ford’s
traditional
vehicles
with
internal
combustion
engines
were
up
2.6%.

Ford’s “Model
e”
electric
vehicle
business
lost
$4.7
billion
in
2023,
including
$1.57
billion
during
the
fourth
quarter.
In
February,
the
automaker
said
it
expected
the
unit
to
lose
between
$5
billion
and
$5.5
billion
in
2024.