The EV strategy of Ford evolves as company faces challenges and seeks profitability.
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| Ford aims to compete with Chinese electric vehicle makers through cost-effective strategies. File Photo |
Dearborn, Michigan, USA, August 21, 2024:
Ford has made significant changes to its electric vehicle strategy, including canceling plans for an electric three-row SUV and delaying the launch of its next-generation electric truck.
The automaker has abandoned its plans to build an electric three-row SUV, opting instead to focus on hybrid technology for its future three-row models. This decision is expected to result in up to $1.9 billion in special charges and expenses.
Additionally, Ford has pushed back the launch of its next-gen electric truck from 2026 to the second half of 2027. The company aims to leverage the lessons learned from the F-150 Lightning to create a more advanced electric pickup with improved features and capabilities, including enhanced aerodynamics and bi-directional charging. By delaying the launch, Ford hopes to benefit from lower-cost battery technology and other cost efficiencies.
To further strengthen its electric vehicle portfolio, Ford plans to introduce a medium-sized electric pickup in 2027. This model will be based on a new, lower-cost platform developed by a specialized team. Ford expects this platform to enable the production of several profitable electric models, helping the company compete with Chinese electric vehicle manufacturers.
To support its electric vehicle initiatives, Ford is investing in domestic manufacturing capabilities. The company will begin producing a new electric commercial van in Ohio in 2026, with battery cells for this van and the next-gen electric truck being manufactured at a Tennessee factory starting in late 2025.
These strategic changes reflect Ford's efforts to address the challenges faced by its current electric models and ensure the profitability of its future EV offerings. By focusing on key areas and leveraging advanced technologies, Ford aims to strengthen its position in the competitive electric vehicle market.