In a significant shake-up of its electric vehicle (EV) strategy, Ford Motor Company has announced the cancellation of its planned three-row electric SUV and the delay of its next-generation all-electric pickup truck until 2027. The three-row SUV, initially postponed to 2027, has now been scrapped entirely, with Ford opting to shift focus toward new gas and hybrid-powered SUVs instead.
This strategic pivot is expected to cost the company approximately $1.5 billion, including a special non-cash charge of $400 million. As part of the restructuring, Ford will reduce its EV investment from 40% to 30% of its annual capital expenditures.
The much-anticipated electric truck, dubbed Project T3, will now see its production pushed back by 18 months, with assembly at Ford's Tennessee EV facility slated for the latter half of 2027 rather than the originally planned 2025.
In addition to these changes, Ford will fast-track the production of a new commercial EV van, set to roll off the line at its Ohio plant in 2026. The automaker is also developing a more affordable EV—a medium-sized pickup truck—at its Irvine, California skunkworks lab.
These strategic adjustments come in response to slower-than-expected EV adoption and challenges in achieving profitability within the segment. Ford has reported substantial costs associated with ramping up EV production amid a deceleration in industry-wide sales growth, projecting a loss of $5 to $5.5 billion in its EV division for the year.
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