Ford delays new EV pickup to 2027, cancels SUV as it retools EV strategy



Ford said Wednesday it is delaying a next-gen EV truck until 2027, pushing back production that was set to start next year at its new Tennessee plant. Ford is adjusting its EV strategy amid amplified pricing pressures for EVs. File Photo by Brian Kersey/UPI | License Photo

Aug. 21 (UPI) -- Ford on Wednesday retooled its electric vehicle strategy, pushing back its next-gen EV truck production at a Tennessee plant from next year to the second half of 2027 and canceling a large electric SUV.

Ford said battery production will start at the new $5.6 billion Tennessee plant in 2025 after initially saying it would begin vehicle production at the facility by then.

In a statement Ford said the changes are part of several actions to broaden its electrification strategy "to reach more customers, improve profitability, and continue to reduce CO2."

Ford said it will take a $400 million non-cash charge to pay for the changes that could eventually cost the company up to $1.5 billion.

The company said it plans to leverage hybrid technology for the new three-row SUVs.

"Ford focuses its next generation of electrified and digitally advanced vehicles where it has competitive advantages -- commercial vans, mid-size and large pickup trucks, and long-range SUVs -- and will offer a range of electrification options designed to speed customer adoption, including lower prices and longer ranges," the statement said.

The company will prioritize a new "digitally advanced" commercial van for 2026, followed by two new "advanced pickup trucks" in 2027.

"We are committed to innovating in America, creating jobs and delivering incredible new electric and hybrid vehicles that make a real difference in CO2 reduction. We learned a lot as the No. 2 U.S. electric vehicle brand about what customers want and value, and what it takes to match the best in the world with cost-efficient design, and we have built a plan that gives our customers maximum choice and plays to our strengths," Ford President Jim Farley said.

Ford's actions come as many automakers adjust to slower-than-expected EV adoption as they struggle to make profits on making EVs.

Ford's Wednesday statement said they are aiming for lower EV prices and longer ranges.

EV shoppers, Ford said, are more cost-conscious now than early adopters were.

"This, coupled with scores of new electric vehicle choices hitting the market over the next 12 months and rising compliance requirements, has amplified pricing pressures," Ford's statement said. These dynamics underscore the necessity of a globally competitive cost structure while being selective about customer and product segments to ensure profitable growth and capital efficiency."

The changes to its EV strategy include development of a new, highly efficient EV platform that will enable more economic production and lower prices for several vehicles based on the same platform.
The first vehicle using the new platform will be a mid-sized electric pickup launching in 2027.

"We're committed to creating long-term value by building a competitive and profitable business. With pricing and margin compression, we've made the decision to adjust our product and technology roadmap and industrial footprint to meet our goal of reaching positive EBIT within the first 12 months of launch for all new models," John Lawler, Ford vice chair and chief financial officer said.