Global automobile giant, Ford has announced a shift in its EV plans, halting a three-row SUV project and postponing the release of a new pickup. The company, however, intend to concentrate on its strengths in pickup trucks and commercial vans, aiming to adapt to the changing demand for electric vehicles.
A statement released by the US company on Wednesday, states that the slowdown in EV demand has prompted automakers like Ford and General Motors to reconsider their investments in new models, as consumer interest has not grown as quickly as expected. Ford’s stock rose 2.16% following the news.
“With pricing pressures and shrinking margins, we’ve decided to adjust our product roadmap and manufacturing strategy to ensure all new models reach positive earnings within the first 12 months of launch,” said Ford CFO John Lawler.
Ford is doubling down on its successful segments—pickup trucks and commercial vehicles—as part of its revised strategy. CEO Jim Farley highlighted the importance of reducing production costs for EVs, a crucial step as the company faces an anticipated $5.5 billion loss in its EV division this year.
To stay competitive against Chinese manufacturers and Tesla, Ford is focusing on a specialized team in California, which is developing a new architecture for affordable EVs. The first vehicle from this initiative, a mid-size electric pickup, is slated for release in 2027.
Ford will incur a $400 million non-cash charge related to the canceled three-row SUV, with potential additional expenses up to $1.5 billion.
As consumer concerns over EV prices and charging infrastructure persist, Ford and other automakers are shifting their short-term focus to hybrid vehicles, recognizing the hesitation among buyers to transition fully from gas-powered to electric vehicles.
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