Ford Motor Company announced on Thursday that it is delaying production of its upcoming all-electric large SUV and pickup truck, as part of a broader shift to offer hybrid options across its entire North American lineup by 2030.
The three-row SUV, initially planned for 2025 production at the company’s Oakville Assembly Plant in Ontario, Canada, will now be postponed until 2027.
Similarly, the next-generation pickup, known as “T3,” will be pushed back from late 2025 to 2026.
According to Ford CEO Jim Farley, “As the No. 2 EV brand in the U.S. for the past two years, we are committed to scaling a profitable EV business, using capital wisely and bringing to market the right gas, hybrid and fully electric vehicles at the right time.”
This decision comes amidst a slower-than-expected adoption of electric vehicles and persistently high production costs across the automotive industry.
The delay in the three-row SUV production is part of a $1.3 billion investment aimed at transitioning the Oakville plant into a dedicated electric vehicle hub.
With U.S. electric vehicle sales starting to slow, Ford says it will delay rolling out new electric pickup trucks — and a new large electric SUV — as it adds gas-electric hybrids to its model lineup. https://t.co/7gSbUkOKaA
— ABC News (@ABC) April 4, 2024
Ford stated that “the additional time will allow for the consumer market for three-row EVs to further develop and enable Ford to take advantage of emerging battery technology, with the goal to provide customers increased durability and better value.”
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Instead of converting existing facilities that produce engine-powered vehicles, Ford will prioritize its EV efforts on new plants, such as the “BlueOval City” campus in Tennessee.
Farley emphasized that the company’s “breakthrough, next-generation EVs will be new from the ground up and fully software enabled, with ever-improving digital experiences and a multitude of potential services.”
Ford is delaying the rollout of an electric three-row sport utility vehicle by two years, extending the layoff of 2,700 workers in Canada who were set to begin building it in 2025. https://t.co/X8vtbFykrY
— Bloomberg (@business) April 4, 2024
The Tennessee facility, which is part of an $11.4 billion investment announced in 2021, will begin producing Ford’s next-generation all-electric truck in 2026 instead of 2025.
Despite the delays, Ford remains committed to its electric vehicle initiatives. The company is continuing construction of battery plants in Michigan, Tennessee, and Kentucky.
In the first quarter of 2024, Ford’s electric vehicle sales increased by 86% compared to the previous year, while hybrid sales rose by 42%.
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However, the automaker’s “Model e” electric vehicle business suffered significant losses, amounting to $4.7 billion in 2023, with $1.57 billion lost in the fourth quarter alone. In February, Ford projected that the unit would lose between $5 billion and $5.5 billion in 2024.
