Ford delays next-generation EV pickup production, cancels three-row SUV plans

Vehicle production at the $5.6 billion Tennessee site, initially set to begin next year, is now expected to start with battery cell production in 2025.

Ford Motor Company announced on August 21 that it is postponing the production of its next-generation all-electric pickup truck at its new Tennessee plant and cancelling plans for a three-row electric SUV.

Instead, Ford will shift its focus to developing hybrid models and electric commercial vehicles. The company revealed plans to introduce a new electric commercial van in 2026, followed by two electric pickup trucks in 2027. One of the pickups will be a full-size truck produced at the Tennessee facility, which is currently under construction, while the other will be a midsize truck developed by a specialized team in California.

The company expects the strategic changes to result in a special noncash charge of approximately $400 million due to the write-down of certain manufacturing assets linked to the canceled SUV. Additionally, Ford anticipates further expenses and cash outlays of up to $1.5 billion, which will be reflected in the financial quarter in which they are incurred.

Ford's capital expenditure plans will adjust, reducing the share of spending on all-electric vehicles from 40% to 30%, though a specific timeline for this shift was not provided. Vehicle production at the $5.6 billion Tennessee site, initially set to begin next year, is now expected to start with battery cell production in 2025.

These changes come amid slower-than-expected adoption of electric vehicles and challenges in producing them profitably. Ford's updated plans follow a previous delay announced five months ago for the three-row SUV and next-generation pickup, known as “T3.”

Ford will continue to produce and update its existing all-electric models, including the Mustang Mach-E crossover and F-150 Lightning pickup truck. The company plans to provide investors with an update on its electrification strategy, technology advancements, profitability, and capital requirements in the first half of 2025.

(With inputs from agencies)