Ford’s People Pleasing Plan: Delays and Cancellations of EV’s and a Risky New Strategy

Ford fans who were looking forward to some new EVs might have to wait a tad longer, as some reshuffling in the car company’s roadmap means bigger (but better) changes. 

New Plans

On Wednesday, Ford Motors announced a major change in its future program for US vehicles.

Along with canceling its planned three-row SUV, the car company is also delaying the launch of the next generation of the US’s best-selling electric truck, the F-150 Lightning, to the second half of 2027.

Call It an Upgrade 

Inspired by the insights gained from F-150 Lightning customers, this new truck (code-named “Project T3”) will offer fresh features not currently featured in any other Ford vehicle, including enhanced bi-directional charging capabilities and superior aerodynamics. 

If Others Can Do It… 

Ford certainly isn’t the first car brand to delay or ditch new EV designs, as General Motors, among others, has implemented similar changes in the past regarding vehicles not selling at the anticipated rate. 

But Why? 

As stated by Jim Farley, the CEO of Ford, one of the prime strategies addressing a deceleration in EV sales growth involves decreasing the production costs of those models. 

That’s Going to Hurt 

This objective is vital for the company’s future growth, especially as it anticipates losses of up to $5.5 billion on EVs for this year. 

Put the Customer First 

In the statement released this week, Farley was quoted as saying: “We learned a lot as the No. 2 U.S. electric vehicle brand about what customers want and value, and what it takes to match the best in the world with cost-efficient design, and we have built a plan that gives our customers maximum choice and plays to our strengths.” 

A Trusted Team 

While competitors like Tesla and Chinese manufacturers continue with EV production at lower costs, Farley expressed his commitment to Ford’s future by relying on the company’s dedicated California-based team, tasked with creating a framework for cost-effective EVs.  

Worth the Wait? 

And the first model utilizing that innovative technology is set to be the mid-sized electric pickup, which was pushed out to 2027. 

Proud Partners 

According to Farley: “We recruited the most technically skilled and creative professionals from inside and outside Ford to drive a radical change in how we develop an electric vehicle.” 

No to Worry 

The work of this highly talented team has evolved into a critical enabler of our electric vehicle strategy. These electric vehicles will be lower cost, and not compromised in any way,” Farley claimed. 

What Do the Clients Want? 

Although Tesla is beating Ford with regards to American electric vehicles, its EV business is booming. 

Nevertheless, the popularity of hybrid technology vehicles is on the rise in the US, which is why Ford is aligning its offerings with current customer preferences. 

More Losses 

But plans cost money, and this particular one will set the company back at least $400 million since it must write down the manufacturing equipment that was established to produce the EV SUVs that are no longer part of its strategy.  

This could mean additional expenses exceeding $1.5 billion. 

What’s 10%? 

And as there’s a rising focus on hybrid vehicles, Ford stated that its share of annual capital expenditure allocated to fully electric vehicles will slide from 40% to about 30%.

Only 2 Years Away 

As for Ford’s next generation of EVs, a commercial van will be first on the list, planned to be manufactured in 2026 at the company’s Ohio assembly plant. 

Building Better Batteries 

Part of Ford’s new strategy is to enhance its battery sourcing and boost manufacturing efficiency to lower expenses. 

This will help the company meet the requirements for incentives provided by the U.S. Inflation Reduction Act (IRA), which remains one of Farley’s top priorities. 

Some Friendly Competition 

According to Farley: “An affordable electric vehicle starts with an affordable battery. If you are not competitive on battery cost, you are not competitive.”

A New Location 

The brand plans on relocating a portion of its battery production, which is conducted along with its South Korean partner LG Energy Solution for the Mustang Mach-E vehicles, from Poland to Holland, Michigan.  

Big Plans Ahead 

Starting in mid-2025, one of the company’s other battery partners, Kentucky-based SK Innovation, will kickstart production on cells for the E-Transit, as well as batteries for Ford’s new electric commercial van in Tennessee later the same year. 

Lasts Longer 

Ford also stated that the production of lithium iron phosphate (LFP) batteries is scheduled to begin in 2026 at its battery facility in Michigan, which will be eligible for IRA benefits. 

Watch This Space 

As per the company’s statement, an update on electrification, technology, profitability, and capital needs will be provided in the first half of 2025.

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