Ford has announced significant changes to its vehicle strategy as it seeks to grow in the electric car market. Accordingly, the automaker said it will cancel its plan for an electric-only SUV. It also announced that it has postponed the launch of the new all-electric F-150 to 2027.
Ford delays electric SUV and pickup models
Ford will replace its canceled electric SUV models with gas and hybrid models that are expected to be more profitable in the short term. The canceled electric model is expected to cost Ford $1.5 billion and create a cash financial burden of $400 million.
Ford also said it will not introduce new full-electric vehicles until it is confident they will be profitable. The company’s Model e battery-electric vehicle division reported a loss of $1.3 billion in the first quarter of 2024 and $1.1 billion in the second quarter.
However, production of some electric models will continue. Ford is prioritizing a new electric commercial van scheduled for production in 2026. The company is also continuing to develop a mid-size electric pickup.
Ford’s expected successor to the popular F-150 Lightning has also suffered delays. The company said it will launch the F-150 Lightning in late 2027 instead of 2025. It will include “bi-directional charging capability and advanced aerodynamics” to turn a profit, the company said.
Ford’s strategic shift is part of an industry-wide slowdown in electric vehicle sales growth. But the company’s two quarters of losses have made these shifts inevitable.
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