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Ford is backing away from its planned all-electric three-row SUV.
The automaker said Wednesday that it will not produce the vehicle, and instead “now plans to leverage hybrid technologies for its next three-row SUVs.”
The cancellation of the SUV will result in a roughly $400 million write-down of “certain product-specific manufacturing assets,” according to the company.
The logo of the Ford Motor Company is displayed on the front grille of an electric Ford Transit being charged in a dealership in Bristol, England, on March 5, 2023. (Matt Cardy/Getty Images / Getty Images)
Ford in April pushed its launch back from 2025 to 2027.
Its cancellation came as part of a wider update to Ford’s electrification strategy that the company said will involve altering its North American vehicle roadmap and other measures.
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Overall, Ford said it was “taking additional actions to deliver a profitable, capital efficient and growing electric vehicle business and add even more propulsion choices for customers that generate lower CO2 emissions.”
Ford signage at a dealership in Richmond, California, on June 21. (David Paul Morris/Bloomberg via Getty Images / Getty Images)
Some of the changes to its vehicle roadmap include bringing a new all-electric commercial van to the market in 2026 and a pair of electric pickup trucks in the year after that.
Ford said it will incorporate its new affordable electric vehicle platform into the mid-sized pickup it has planned for 2027.
| Ticker | Security | Last | Change | Change % |
|---|---|---|---|---|
| F | FORD MOTOR CO. | 11.12 | -0.15 | -1.33% |
Meanwhile, its next-generation “Project T3” truck will now come out in the latter half of that year, a change that “allows the company to utilize lower-cost battery technology and take advantage of other cost breakthroughs while the market continues to develop,” Ford said.
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“We’re committed to creating long-term value by building a competitive and profitable business,” Ford CFO John Lawler said of the company’s electric vehicles in a statement. “With pricing and margin compression, we’ve made the decision to adjust our product and technology roadmap and industrial footprint to meet our goal of reaching positive EBIT within the first 12 months of launch for all new models.”
A badge on a vehicle at a Ford dealership in New Lebanon, New York, on Jan. 25. (Angus Mordant/Bloomberg via Getty Images / Getty Images)
The automaker also outlined several steps it was taking to reduce EV battery-related costs and qualify for tax credits.
Its Ford Model e business segment saw $1.3 billion in revenue and EBIT loss of $2.46 billion over the first six months of 2024.
In the same time frame, the company as a whole has generated $90.6 billion in revenues. Its net income, meanwhile, over the first two quarters totaled $3.2 billion.