Ford said Wednesday it plans to roll out more hybrid vehicles and cut previously announced production of battery-electric vehicles as it adjusts to the changing electric vehicle landscape.
The automaker says its change roadmap is aimed at driving down prices, especially for EVs where buyers are now more cost-conscious than early adopters of years past.
The new roadmap is also aimed at capitalizing on growing demand for hybrid vehicles, a direct consequence of which will be a reduction in investment in electric vehicles from about 40% of Ford’s annual capital expenditures today to 30%.
3-row electric SUV debuts, mid-size electric truck debuts
Ford confirmed the new electric vehicles in the plan will include a commercial van built in Ohio starting in 2026, followed by mid-size and full-size pickups in 2027. A previous announcement Three-row SUV The three-row SUV, originally scheduled for a 2025 launch, has been scrapped. Ford says it has invested $400 million so far in the three-row SUV, and the final cost of its shifting product plans could be as much as $1.5 billion.
The midsize truck will be based on a new low-cost EV platform that Ford says was developed by its “skunkworks” team in California and is set to power the automaker’s BlueCruise autonomous driver assistance feature. The platform will be used for a variety of vehicles, including passenger and commercial vehicles, starting with the midsize truck.
The full-size truck, codenamed Project T3, will replace the F-150 Lightning. It will be built in Tennessee and was previously referred to by Ford CEO Jim Farley as the “Millennium Falcon of pickup trucksThe full-size truck was originally scheduled to launch in 2025, but Ford said Wednesday the delay would allow the automaker to benefit from battery savings and other cost advantages, while also giving the market more time to adapt to electric vehicles.
Cheaper batteries are key
One specific cheaper battery measure Ford will take is to produce cheaper lithium iron phosphate batteries in the United States, meaning they will qualify for the benefits of the Deflation Act. Ford also said on Wednesday that it will move battery production for the Mustang Mach-E from Poland to the United States, suggesting the car will survive and also qualify for the Deflation Act tax credits.
Ford also new breeding planespecially in larger segments, where the automaker says battery costs remain a challenge. Ford specifically mentioned three-row SUVs that will offer hybrid powertrains, which could include the Explorer and Expedition segments.
Ford also teased a hybrid option for the next-generation F-Series Super Duty, with the automaker saying it will offer multiple powertrain options.
Ford plans to update its electrification plan in the first half of 2025.
