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Ford Delays Electric Truck, Cancels Three-Row SUV

Aug 21, 2024 1 min read

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Ford Motor Company is revising its electric vehicle strategy, canceling plans for a three-row electric SUV and delaying the production of its next-generation all-electric pickup truck. The automaker will also introduce a new pickup and van to its future lineup as it adjusts to slower-than-expected growth in the EV market. This strategic shift will result in a special non-cash charge of approximately $400 million for the write-down of certain manufacturing assets related to the three-row SUV. Additionally, the changes may lead to further expenses and cash outlays of up to $1.5 billion.

Ford's decision includes focusing on hybrid models for its upcoming family vehicles while remaining committed to next-generation electric pickups. The company is also prioritizing the development of electric commercial vehicles, with plans to launch a new electric van in 2026, followed by two electric pickups in 2027. Production at a new plant in Tennessee, originally slated to begin vehicle manufacturing next year, will be delayed, though battery cell production is still expected to commence in 2025. Chief Financial Officer John Lawler emphasized that customers now desire more electrification options, with hybrid models being a preferred solution.

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