Ford Signals Reduction in Electric Vehicle Spending, Drops Plans for EV SUV and Postpones Launch of EV Pickup
Ford Signals Reduction in Electric Vehicle Spending
Big news in the automotive industry as Ford announced a significant shift in its electric vehicle (EV) strategy. The company is reducing its spending on EV technology and making changes to its lineup of electric vehicles.
Changing Market Dynamics
The EV market has seen rapid changes in the past year, with slowing demand and price cuts from major players like Tesla. This has put pressure on manufacturers to reevaluate their strategies and make adjustments to stay competitive.
Ford, which has invested heavily in electric cars and production facilities over the years, is now shifting its focus. The company has decided to drop plans for an EV SUV and postpone the launch of an EV pickup truck.
New Priorities
Instead of the previously planned EV models, Ford will prioritize the introduction of a new digitally advanced commercial van in 2026, followed by two new advanced pickup trucks in 2027. The company also plans to leverage hybrid technologies for its next three-row SUVs.
Additionally, Ford is realigning its battery sourcing plan to reduce costs and maximize capacity utilization. Some battery production will be moved from Poland to the US to qualify for tax credits.
CEO Perspective
Ford President and CEO Jim Farley emphasized the company’s commitment to innovation and job creation in America. He stated, “We have built a plan that gives our customers maximum choice and plays to our strengths.”
Farley also announced a delay in the launch of the electric truck project, known as “Project T3,” to the second half of 2027. This decision comes after the successful launch of the F-150 Lightning, the best-selling electric truck in the US.
Spending Reduction
As part of these changes, Ford will reduce the share of annual capital expenditures dedicated to pure electric vehicles from 40 to 30 percent. The company will also take a non-cash charge of about $400 million for the write-down of certain manufacturing assets related to the canceled EV models.
Overall, Ford’s decision reflects a strategic realignment to ensure a capital-efficient and profitable electric vehicle business while continuing to reduce carbon emissions over time.
Stay tuned for more updates on Ford’s evolving electric vehicle strategy as the automotive industry continues to adapt to changing market dynamics.