Wiktor Wise
Ford Motor Company is working to deliver a profitable, capital-efficient, and growing electric vehicle business. The company is taking steps to reduce overall costs and lower CO2 emissions in its electric vehicle portfolio. In 2022, Ford established a team in California to focus on next-generation vehicle development and reduce the cost of electric vehicles. Ford plans to introduce an all-new electric commercial van in 2026, followed by two new electric pickup trucks in 2027. However, there have been some delays and adjustments to Ford's electric vehicle plans, including the cancellation of a planned three-row electric SUV. The company is facing competition from Chinese manufacturers and Tesla, who are driving down costs on EV production. Despite some setbacks, Ford remains committed to expanding its electric vehicle offerings and providing customers with a range of electrification options.
| Characteristics | Values |
|---|---|
| Electric vehicle strategy | To focus on hybrids, citing consumers' demands for affordability and longer ranges |
| Electric vehicle sales | Increased by 86% in the first quarter of 2024 |
| Hybrid sales | Rose 42% in the first quarter of 2024 |
| Electric commercial vehicle | Expected to be built at the Ohio Assembly Plant in Avon Lake, Ohio, in 2026 |
| Electric truck | Expected to be delivered in 2026 |
| Three-row electric SUV | Cancelled |
| Hybrid SUVs | Expected to be offered |
| Electric pickup truck | Expected in 2027 |
| Electric vehicle business | Focus on being profitable, capital-efficient, and growing |
| Electrification options | Designed to speed up customer adoption, including lower prices and longer ranges |
| Electric vehicle portfolio | Prioritize the introduction of a new digitally advanced commercial van in 2026, followed by two new advanced pickup trucks in 2027 |
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What You'll Learn
Ford's electric vehicle strategy
Ford Motor Company is broadening its electric vehicle (EV) strategy to reduce CO2 emissions, improve profitability, and reach more customers. The company aims to provide a range of electrification options to speed up customer adoption, including lower prices and longer ranges.
Ford is focusing its next-generation electrified and digitally advanced vehicles on commercial vans, mid-size and large pickup trucks, and long-range SUVs. The company plans to introduce an all-new commercial van, the E-Transit, in 2026, followed by two new pickup trucks in 2027, including a medium-sized pickup based on the platform designed by Ford's California skunkworks team. The California team is developing a smaller, low-cost, and flexible EV platform capable of supporting multiple vehicles at high volumes.
Ford is also expanding its hybrid electric vehicle offerings and expects to offer hybrid powertrains across its entire Ford Blue lineup in North America by the end of the decade. The company is investing in EV programs to build a full EV lineup and is committed to scaling a profitable EV business using capital wisely.
To reduce costs, Ford has adjusted its battery sourcing strategy, including relocating some battery production to qualify for incentives under the U.S. Inflation Reduction Act. The company is also leveraging its strengths in commercial vehicles and U.S.-based battery production to position itself for the next wave of EV growth.
Ford's EV strategy reflects its understanding of evolving customer needs, such as cost-consciousness, long-term savings, and practical concerns like fuel savings and charging convenience. The company aims to cater to these demands by offering competitive pricing, extended driving ranges, and advanced digital customizations.
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Electric SUV plans cancelled
Ford Motor Company has recently announced that it will be cancelling its plans for an all-electric large SUV in the US. This decision comes as the company shifts its strategy to focus on hybrid vehicles and reducing costs. The company has cited profitability concerns and competition from Chinese EV manufacturers as the main reasons for this decision.
Ford has written off $1.9 billion due to the cancellation, including a $400 million write-down of certain product-specific manufacturing assets and additional expected expenses of up to $1.5 billion. The company has stated that it will not be able to reach a profit on the electric SUV within a year, which is its measure of whether a new car is viable.
Instead of the planned all-electric large SUV, Ford will now produce a hybrid version. This decision is part of Ford's broader electrification strategy to reach more customers and improve profitability while continuing to reduce carbon emissions. The company plans to introduce a range of electrification options, including lower prices and longer ranges, to speed up customer adoption of electric vehicles.
Ford is not giving up on electric vehicles entirely, however. The company will continue to produce and update its current all-electric vehicles such as the Ford Mustang Mach-E and F-150 Lightning pickup truck. Additionally, Ford plans to introduce a fully electric commercial van in 2026, followed by two new electric pickup trucks in 2027. The company is also working on reducing battery sourcing and production costs, including relocating some battery production to qualify for incentives under the US Inflation Reduction Act.
While this decision to cancel the electric SUV plans may be disappointing to some, Ford is committed to delivering a profitable, capital-efficient, and growing electric vehicle business that meets the needs of its customers and reduces carbon emissions. The company will provide further updates on its electrification strategy, technology, and profitability in the first half of 2025.
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Electric pickup trucks
Ford's first electric truck, the F-150 Lightning, was released in 2024 and won the Kelley Blue Book Best Buy Award for the electric truck category. The F-150 Lightning has an EPA-estimated range of 300 miles, 171 available Ford BlueCruise hands-free highway driving, and a standard 15.5-inch touchscreen. The truck combines advanced technology features with extended range and accessibility.
Ford is also developing a smaller, low-cost, profitable, and flexible EV platform that can be used for multiple vehicles in high volumes. This platform is being designed by a skunkworks team in California. The first vehicle to be released using this new technology will be a mid-sized electric pickup truck, which is set to be released in 2027.
Ford is also expanding its Ohio Assembly Plant in Avon Lake to produce an all-new electric commercial vehicle for Ford Pro customers, with production beginning in 2026. This will be followed by two new advanced pickup trucks in 2027.
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Electric commercial vehicles
In 2022, Ford established a skunkworks team in California to focus on changing the company's approach to next-generation vehicle development and reducing the cost of electric vehicles. This team takes a systems-integration approach across design, engineering, supply chain, and manufacturing to fundamentally rethink the full vehicle.
Ford plans to introduce an all-new electric commercial van, the E-Transit, that will begin production in 2025 or 2026 in Ohio. This van will be digitally advanced, with a fully electric powertrain and an 89 kWh battery, and will be offered in two vehicle lengths and three different roof heights. The company hopes to capitalize on its success in the gas-engine commercial vehicle market with this new electric offering.
In addition to the electric commercial van, Ford is also working on two new electric pickup trucks, with one based on the platform designed by the California skunkworks team. These trucks were initially planned for release in 2025 but have been delayed, with the new expected release date in the second half of 2027. This delay is intended to allow Ford to take advantage of lower-cost battery technology and stimulate demand for its electric vehicles.
Ford is committed to creating a competitive and profitable electric vehicle business, and these upcoming electric commercial vehicles are a key part of that strategy. The company is investing in a broad set of EV programs and expanding its hybrid electric vehicle offerings to provide customers with a range of electrification options.
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Electric vehicle manufacturing plants
Ford Motor Company is taking steps to deliver a profitable, capital-efficient, and growing electric vehicle business. The company is committed to scaling a profitable EV business and bringing to market the right gas, hybrid, and electric vehicles at the right time. Ford is expanding its hybrid electric vehicle offerings and expects to offer hybrid powertrains across its entire Ford Blue lineup in North America by the end of the decade.
Ford is also investing in a broad set of EV programs and working to build a full EV lineup. The company's electric vehicle sales increased by 86% in the first quarter of 2024 compared to the previous year.
Ford is making significant investments in its electric vehicle manufacturing plants and infrastructure. The company is constructing the BlueOval City campus, a new advanced auto production complex in Tennessee. The campus will include the Tennessee Electric Vehicle Center assembly plant, which will be Ford's first Industry 4.0 plant, combining automation and connectivity to elevate quality and efficiency. The Tennessee Electric Vehicle Center is expected to begin customer deliveries of Ford's next-generation electric truck in 2026.
In addition to the Tennessee plant, Ford is also expanding its Ohio Assembly Plant in Avon Lake. The Ohio plant will produce an all-new electric commercial vehicle for Ford Pro customers, with production expected to begin in 2026. The company is also investing in battery plants in Michigan, Kentucky, and Tennessee through a joint venture with SK Innovation. These battery plants will support Ford's North American assembly plants and power next-generation electric Ford and Lincoln vehicles.
Ford is also transforming its Oakville Assembly Plant in Ontario, Canada, from a gas vehicle assembly plant into an EV manufacturing complex. The launch of Ford's all-new three-row electric vehicles at the Oakville plant has been delayed until 2027.
Overall, Ford is making significant investments in its electric vehicle business, including the development of new manufacturing plants and infrastructure. The company is committed to bringing a full lineup of electric vehicles to market while also expanding its hybrid offerings.
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Frequently asked questions
Ford has already released some electric vehicles, including the Mustang Mach-E and the F-150 Lightning pickup. However, the company has recently delayed the release of some upcoming electric vehicles, including a three-row electric SUV, which has been pushed back to 2027.
Ford has stated that the delays will allow the company to take advantage of lower-cost battery technology and focus on making its vehicles more affordable for consumers. The company is also facing increasing competition from Chinese competitors and other automakers, such as Tesla, who are driving down costs on EV production.
Ford plans to introduce an all-new electric commercial van, which will be produced at its Ohio Assembly plant and is expected to begin deliveries in 2026. The company is also working on a new generation of electric trucks, with deliveries expected to begin in 2026 and ramp up gradually to ensure quality.
