- Ford has canceled plans to produce a three-row electric SUV due to a weakening electric vehicle (EV) market.
- The decision will result in a financial impact of up to $1.9 billion (€1.71 billion).
- Ford is reallocating resources to other projects, focusing on launching an electric delivery van in 2026 and a mid-sized electric pickup in 2027.
Detroit, 21 August (FFN) – Ford Motor Company has decided to halt its plans to produce a three-row electric SUV, a move that will cost the automaker up to $1.9 billion (€1.71 billion). This decision reflects the challenges currently facing the electric vehicle (EV) market, where demand has softened, leading Ford to reconsider its investment in certain EV projects. This report is based on information from Reuters and DPA.
The three-row electric SUV was initially scheduled for production in 2025, but the timeline was later pushed to 2027 before Ford ultimately decided to cancel the project altogether. This strategic shift comes as Ford’s EV division continues to report significant losses, while its combustion engine and commercial vehicle segments remain profitable. Additionally, the demand for hybrid vehicles has surged, further influencing the company’s decision.
In response to these market conditions, Ford announced a reduction in capital expenditures for electric vehicles, lowering the budget allocation from 40% to 30% of its annual spending. Instead, the company will focus on launching an electric delivery van by 2026 and a mid-sized electric pickup by 2027. Ford’s Chief Financial Officer, John Lawler, emphasized that the company’s goal is for all new models to generate profits within the first 12 months of their market release.
This decision highlights Ford’s adaptive strategy in the face of changing market dynamics, as the company shifts its focus towards more profitable and strategically viable projects in the evolving automotive landscape.
