Electric vehicles (EVs) are the future, and they are also the place where we’re most likely to see innovation as far as the automotive market goes right now. Ford is doing a restructuring of its EV section, including announcing new vehicles and cancelling others.
Ford is undergoing a significant transformation in its EV strategy. The bulk of these changes are geared towards improving affordability and offer a broader range of lower-emission vehicles to customers. The company’s plan involves adjusting its North American product roadmap to include more affordable EVs with extended ranges and prioritize new commercial and pickup truck models. Ford’s EV section has faced hardships, and these measures aim to curb that.
To achieve this, Ford will streamline its US battery sourcing to lower costs and optimize capacity. The company’s upcoming Expedition-like three-row SUV, as well as any other planned three-row SUV, has officially been shelved and will no longer be produced. Ford will make other three-row SUVs, but we’ll have to wait for that. Ford is also leveraging hybrid technologies for those upcoming three-row SUVs and focusing on electric commercial vehicles, starting with a new model in 2026. Additionally, the company will launch an affordable mid-sized electric pickup truck in 2027, developed using a new low-cost, highly efficient platform.
The launch of Ford’s next-generation electric truck, code-named “Project T3,” is being retimed to the second half of 2027, enabling the company to utilize lower-cost battery technology and other cost-saving measures. The truck will be assembled at BlueOval City’s Tennessee Electric Vehicle Center. Ford’s strategy also involves realigning its battery sourcing to qualify for Inflation Reduction Act benefits and ensure cost reductions. The company aims to improve capital efficiency and achieve profitability within the first 12 months of launch for all new models.
With these changes, Ford anticipates a decrease in annual capital expenditures dedicated to pure EVs, from 40% to 30%. The company will provide an update on its electrification, technology, profitability, and capital requirements in the first half of 2025.
Source: Ford
