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Ford Officially Cancels Its Three-Row Electric SUV As Hybrids Will Now Be The Focus
Growing demand for hybrids and increased price pressure in the electric vehicle segment have led Ford to change its electrification plans.
The American automaker has announced that it has cancelled a three-row electric SUV originally promised for a 2025 launch with a range of around 560 km. It is said to have already invested $400 million in the project and the final cost of its revised product plan could reach up to $1.5 billion.
The automaker also said it is reducing its investment in electric vehicles from the current 40% of annual capital costs to 30%.
Instead of an electric SUV with three rows of seats, Ford will focus on a new family of SUVs with three rows of seats and hybrid technology. The automaker also hinted at a hybrid option for its next-generation F-Series Super Duty pickup, which the automaker says will offer a range of powertrain options.
Ford remains committed to electric vehicles and has announced a new low-cost EV platform that will support multiple vehicles, including the passenger and commercial segments. The first vehicle on the platform will be a medium-sized pickup truck that should appear in 2027.
Also, in 2027, Ford’s successor to the F-150 Lightning will appear. Codenamed Project T3, the new full-size electric pickup truck was originally slated for a 2025 launch, but Ford has now said that delaying its launch will allow it to take advantage of cheaper battery options while giving the market more time to adapt to electric vehicles. Production will take place in Tennessee, where preparations are already underway.
An electric delivery van is also planned for 2026 and production is planned for Ohio.
Ford said it is also taking measures to reduce battery costs. One measure is to manufacture cheaper lithium iron phosphate batteries in the US, which means they will qualify for the benefits of the Inflation Reduction Act. The second is moving battery production for the Mustang Mach-E from Poland to the US, which should make the batteries also eligible for tax credits from the Inflation Reduction Act.
An update of electrification plans will be announced in the first half of 2025, according to Ford.
