Ford unveils a refreshed electrification plan centered on hybrids and a renewed product cadence
Ford has unveiled a refreshed electrification strategy that shifts from a previously planned fully electric three‑row SUV. The company confirms a total impact of about $1.9 billion in additional costs and impairments, mainly tied to the cancellation of the SUV project. In its statement, Ford notes the strategy will adjust the timing of product launches and realign battery sourcing, while placing greater emphasis on hybrid technologies for its upcoming three‑row SUVs. [Attribution: Ford Motor Company press release]
As part of the shift, Ford will record a non‑cash impairment charge of approximately $400 million to devalue certain manufacturing assets tied to the canceled fully electric three‑row SUV. The plan also allows for incremental cash and non‑cash costs of up to $1.5 billion to be recognized in the quarter those costs are incurred, bringing total charges to around $1.9 billion. The North American roadmap prioritizes a digitally advanced commercial van planned for 2026, followed by two new advanced pickups in 2027 and additional affordable vehicles in the future.
The commercial van will be assembled at Ford’s Ohio plant starting in 2026. One of the pickups will be a mid‑size model built on a platform led by a former Tesla engineering leader who steered the Model Y, while another next‑generation truck will be produced in Tennessee about two years later than previously planned. Ford also states it will realign its battery sourcing strategy in the United States to reduce costs, maximize capacity utilization, and support current and future EV production. [Attribution: Ford Motor Company press release]
Reduced capital spending
Ford’s chief financial officer notes that to strengthen the financial performance of the EV business, the company will raise the share of U.S. battery production to leverage manufacturing credits included in the 2022 Inflation Reduction Act signed by the Biden administration. [Attribution: Ford Motor Company press release]
Additionally, Ford states that given propulsion options and growing demand for hybrids, the annual capital expenditure mix for battery‑driven EVs will fall from roughly 40 percent to about 30 percent. The carmaker also announces changes to its battery‑supply plans to remain competitive with lower‑cost Chinese suppliers. [Attribution: Ford Motor Company press release]
Hybrid technologies come to the fore
Finally, Ford indicates that for certain commercial applications and larger vehicles, the cost of a pure electric battery presents a challenge. The company intends to develop a new family of electrified three‑row SUVs that will integrate hybrid technologies, offering improved efficiency, better performance, and lower emissions compared with gasoline‑only models, while extending highway range relative to pure EVs. [Attribution: Ford Motor Company press release]
The next generation of Ford’s Super Duty F‑Series pickups will offer a range of powertrains, reflecting Ford’s leadership in hybrid pickups with the F‑150 and Maverick. The company’s leadership reiterates that Ford remains a global pioneer in pickups and is preparing this valuable franchise for the future across all sizes, providing hybrid, electric, and other electrified options so customers can choose based on how they use their trucks. [Attribution: Ford Motor Company press release]