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Ford Alters EV Plans, Drops Three-Row Electric SUV from Lineup

Ford has revealed a major overhaul of its electric vehicle strategy, which includes scrapping plans for a new electric three-row SUV. The automaker will now concentrate on hybrid vehicles, which it believes offer a more cost-effective solution for consumers compared to fully electric models. As part of this shift, Ford is re-evaluating its battery supply chain to enhance efficiency.

Consequently, the company is cutting its annual investment in fully electric vehicles from approximately 40% to about 30% of its total budget. Rather than developing an electric three-row SUV, Ford plans to introduce hybrid technology in its upcoming three-row SUV models, although the exact number of these models remains unspecified. This hybrid focus will also extend to Ford’s F-series Super Duty trucks, which will feature hybrid powertrains for the first time.

Ford refocuses on hybrids, postpones electric models to benefit from future battery advancements (Ford)

Additionally, Ford has revised its production schedule for upcoming electric vehicles. The rollout of its new commercial electric van has been rescheduled to begin in 2026 at the Ohio Assembly Plant in Avon Lake, Ohio. Meanwhile, the debut of Ford’s next-generation electric truck, initially planned for 2025, has been delayed to the second half of 2027.

This project, known as T3, is being postponed to leverage anticipated advancements in lower-cost battery technologies and other innovations over the next few years. Ford is also working on a mid-size electric pickup truck, set to be introduced in 2027, developed by a specialized team in California. However, details about this mid-size truck are still sparse.

Jim Farley, Ford’s president and CEO, underscored the critical role of competitive battery costs, remarking, “If you are not competitive on battery cost, you are not competitive.” To address this, Ford is focusing on reducing battery-related costs, including relocating some production of the Mustang Mach-E’s batteries from Poland to Holland, Michigan, in 2025 to qualify for benefits under the Inflation Reduction Act.

Joseph Palaz

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Joseph Palaz

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