Ford Motor is delaying the production of a new all-electric large SUV and pickup truck as it shifts towards offering hybrid options across its entire North American lineup by 2030. The automaker announced that it will be continuing to invest in electric vehicles (EVs) but is pushing back the production of these vehicles by a few years due to slower than expected adoption rates and high production costs. The three-row SUV, part of a $1.3 billion investment to transition Ford’s Oakville Assembly Plant in Ontario, was originally planned for 2025 but will now be produced in 2027. The next-generation pickup truck, codenamed “T3,” has also been delayed to 2026 from late 2025.
Despite being the second-ranked EV brand in the U.S. behind Tesla, Ford ranked third overall in EV sales during the first quarter of the year, with both Tesla and Hyundai outselling the Detroit automaker. Ford CEO Jim Farley emphasized the company’s commitment to scaling a profitable EV business by introducing gas, hybrid, and fully electric vehicles at the right time. Ford plans to shift its focus on new plants such as its “BlueOval City” campus in Tennessee rather than converting existing facilities that produce gas-powered vehicles to electric ones. This strategic move aims to ensure that the company can take advantage of emerging battery technology and provide customers with increased durability and better value.
Ford’s massive Tennessee facility, part of an $11.4 billion investment announced in 2021, will now begin production of Ford’s next-generation all-electric truck in 2026 instead of 2025. The automaker is also actively constructing battery plants in Michigan, Tennessee, and Kentucky to support its EV production plans. In the first quarter of 2024, Ford saw an 86% increase in electric vehicle sales from the previous year, while hybrid sales rose by 42% year over year. Sales of traditional vehicles with internal combustion engines also increased by 2.6%, demonstrating the company’s ongoing commitment to offering a range of propulsion options to consumers.
Ford’s “Model e” electric vehicle business experienced significant losses, with $4.7 billion in losses in 2023, including $1.57 billion in the fourth quarter alone. The company projected an expected loss of between $5 billion and $5.5 billion for the unit in 2024. These financial challenges highlight the ongoing difficulties that automakers face in transitioning to electric vehicles, with high costs and market conditions impacting profitability. Despite these setbacks, Ford remains dedicated to its EV goals and is focused on delivering breakthrough, next-generation EVs that are fully software-enabled and provide enhanced digital experiences for customers.
As the automotive industry continues to navigate the challenges of transitioning to electric vehicles, Ford’s decision to delay production of its all-electric large SUV and pickup truck reflects the shifting market conditions and the need for strategic adjustments. By focusing on developing new EV plants and leveraging emerging battery technology, Ford aims to position itself for success in the rapidly growing electric vehicle market. The company’s commitment to offering a range of propulsion options, including gas, hybrid, and fully electric vehicles, demonstrates its flexibility in meeting consumer demand and addressing evolving industry trends. Despite financial challenges in its EV business unit, Ford remains committed to scaling a profitable EV business and bringing innovative, software-enabled, and digitally enhanced EVs to market at the right time for customers.
