DETROIT \u2014\u00a0Ford Motor\u00a0is 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.<\/p>\n
Instead, Ford said it will prioritize the development of hybrid models, as well as electric commercial vehicles such as a\u00a0new electric commercial van\u00a0in 2026, followed by two EV pickup trucks in 2027.<\/p>\n
The pickups are expected to be a\u00a0full-size truck, which will be produced at the Tennessee plant that\u2019s currently under construction in 2027,\u00a0and a new midsize truck being developed by a\u00a0specialized \u201cskunkworks\u201d team\u00a0in California.<\/p>\n
\u201cAs we\u2019ve learned in the marketplace, and we\u2019ve seen where people have gravitated, we\u2019re going to focus in where we have competitive advantage, and that\u2019s on commercial land trucks and SUVs,\u201d Ford CFO John Lawler said Wednesday.<\/p>\n
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.<\/p>\n
Ford said it will incur a\u00a0special non-cash charge\u00a0of about $400 million for the write-down of certain product-specific manufacturing assets, including the cancellation of the three-row SUV.<\/p>\n
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.<\/p>\n
Lawler said the company\u2019s 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.<\/p>\n
Vehicle production at the\u00a0new $5.6 billion Tennessee site\u00a0was initially expected to begin next year. The company said it still expects to begin battery cell production at the site in 2025.<\/p>\n
The changes are the latest for Ford and come amid\u00a0slower-than-expected adoption of EVs\u00a0as well as automakers not being able to profitably produce the vehicles.<\/p>\n
The new plans come roughly five months after Ford said\u00a0it would delay production\u00a0of the three-row SUV and next-generation pickup, codenamed \u201cT3.\u201d<\/p>\n
\u201cThis is really about us being nimble and listening to responses from our customers,\u201d Lawler said during a call Wednesday morning. \u201cWe\u2019ve been out in the [EV] market here for over two years, and we\u2019ve learned a lot, and what we\u2019re understanding is that customers want more electrification choices.\u201d<\/p>\n
The rollout of Ford\u2019s next generation of EVs will begin with a commercial van that will be assembled at Ford\u2019s Ohio Assembly Plant starting in 2026, according to the company.<\/p>\n
The automaker previously said it would not launch a vehicle if there wasn\u2019t 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.<\/p>\n
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.<\/p>\n
The company said it plans to provide investors an \u201cupdate on electrification, technology, profitability and capital requirements\u201d in the first half of 2025.<\/p>\n<\/p>\n
DETROIT \u2014\u00a0Ford Motor\u00a0is 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\u00a0new electric commercial van\u00a0in 2026, followed by […]<\/p>\n","protected":false},"author":0,"featured_media":8357,"comment_status":"closed","ping_status":"closed","sticky":false,"template":"","format":"standard","meta":{"footnotes":""},"categories":[4],"tags":[],"class_list":["post-8356","post","type-post","status-publish","format-standard","has-post-thumbnail","hentry","category-business"],"_links":{"self":[{"href":"https:\/\/businesstriumphs.com\/index.php\/wp-json\/wp\/v2\/posts\/8356","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/businesstriumphs.com\/index.php\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/businesstriumphs.com\/index.php\/wp-json\/wp\/v2\/types\/post"}],"replies":[{"embeddable":true,"href":"https:\/\/businesstriumphs.com\/index.php\/wp-json\/wp\/v2\/comments?post=8356"}],"version-history":[{"count":0,"href":"https:\/\/businesstriumphs.com\/index.php\/wp-json\/wp\/v2\/posts\/8356\/revisions"}],"wp:featuredmedia":[{"embeddable":true,"href":"https:\/\/businesstriumphs.com\/index.php\/wp-json\/wp\/v2\/media\/8357"}],"wp:attachment":[{"href":"https:\/\/businesstriumphs.com\/index.php\/wp-json\/wp\/v2\/media?parent=8356"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/businesstriumphs.com\/index.php\/wp-json\/wp\/v2\/categories?post=8356"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/businesstriumphs.com\/index.php\/wp-json\/wp\/v2\/tags?post=8356"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}