Ford cancels eSUV, delays electric truck

US automaker Ford Motor updated its electric vehicle (EV) strategy, canceling its planned three-row electric SUV and delaying the production of a next-generation all-electric pickup truck until 2027.

The three-row SUV had already been delayed to 2027, but with its cancellation, Ford will now pivot to producing new gas and hybrid-powered three-row SUVs, the company said today.

This decision could potentially cost the company $1.5bn in expenses, including a special non-cash charge of $400mn. The automaker will reduce its EV spending from 40pc to 30pc of its annual capital expenditures.

The next-generation electric truck, known as Project T3, will be delayed, with production now scheduled for the second half of 2027 instead of 2025. Despite the 18-month delay, Ford's Tennessee EV facility will still assemble the vehicle.

Ford will also prioritize a new commercial EV van that will begin production at its Ohio plant in 2026. Additionally, the company is working on a more affordable EV in one of its skunkworks labs in Irvine, California. This project will produce a medium-sized pickup truck.

These shifts come after slower than expected EV adoption and difficulties in making EVs profitable. Ford reported significant costs related to ramping up EV production as industry sales growth slows. Ford disclosed that it expects its EV business to lose between $5bn-5.5bn for the year.

By Jasmine Palacios