Detroit – Ford Motor The company said Wednesday it is delaying production at a new plant in Tennessee to make its next-generation all-electric pickup truck and canceling plans for a three-row electric SUV.
Instead, Ford said it will prioritize the development of hybrid models and electric commercial vehicles such as a new electric commercial van in 2026, followed by two EV pickup trucks in 2027.
The pickups will be a full-size truck, which will be produced in 2027 at the Tennessee plant currently under construction, and a new midsize pickup.
The moves are to better deliver a capital-efficient, profitable electric vehicle business, said Ford CFO John Lawler. But, in the short run, they cost the company.
Ford said it would cause a Special cashless payment About $400 million to write down certain product-specific manufacturing assets, including the cancellation of the three-row SUV.
The changes could result in additional costs and cash costs of up to $1.5 billion, the company said. Ford will represent those in the quarter they pay as a special item.
Vehicle production at the new $5.6 billion Tennessee site was expected to begin next year. The company said it expects to begin battery cell production at the site in 2025.
Ford’s recent changes come as slower-than-expected adoption of EVs and automakers are unable to profitably produce the vehicles.
The new plans come about five months after Ford said it was delaying production of a three-row SUV and a next-generation pickup codenamed “T3.”
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