Detroit – Ford Motor Company The company said on Wednesday it would delay production at a new factory in Tennessee that will build its next-generation all-electric pickup truck and cancel plans to build 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 electric pickup trucks in 2027.
The pickups are expected to be a full-size truck (to be built in 2027 at the Tennessee plant currently under construction) and a new midsize pickup.
Ford Chief Financial Officer John Lawler said the actions are aimed at better building a capital-efficient, profitable electric vehicle business. But in the short term, they will cost the company.
Ford said it would incur Special non-cash charges About $400 million was used for writedowns of certain product-specific manufacturing assets, including the cancellation of three-row SUVs.
The changes could also result in additional costs and a cash outlay of up to $1.5 billion, the company said. Ford will reflect these charges as a special item in the quarter in which they are incurred.
The new $5.6 billion Tennessee plant was initially expected to begin producing cars next year. The company said it still expects to start battery production at the plant in 2025.
The changes are the latest for Ford as the adoption of electric vehicles is slower than expected and the automaker is unable to turn a profit while producing the vehicles.
About five months ago, Ford said it would delay production of its three-row SUV and next-generation pickup truck, code-named the T3.
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