Ford postpones release of three-row electric SUV and next EV truck program

Ford, the second-largest automaker in the United States by sales, has announced a delay in the launch of its new three-row electric vehicles. These vehicles are set to be built at its assembly complex in Oakville, Ontario, now expected to be released in 2027 instead of the previously planned 2025. Additionally, Ford will also postpone deliveries of its all-new EV truck, which will be produced at a new plant in western Tennessee, until 2026. The initial plan was to start production in late 2025 with a target of manufacturing up to 500,000 electric trucks annually.

The decision to delay these launches was made by Ford to allow the consumer market for three-row EVs to further mature, as well as to leverage emerging battery technology. While the EV rollout is being adjusted, Ford is focusing on expanding its hybrid electric vehicle options. By the end of the decade, the company aims to offer hybrid powertrains across its entire Ford Blue lineup in North America.

The shift in strategy comes as U.S. electric vehicle sales growth slowed significantly to 2.7% in the first quarter of this year, in stark contrast to the 47% growth experienced last year. Overall new vehicle sales saw an increase of nearly 5%, resulting in a decline in EV market share to 7.1%. However, hybrid sales showed robust growth, with a 45% increase in sales recorded from January through March, while plug-in hybrids grew by 34%.

Ford’s Chief Financial Officer, John Lawler, previously announced that the company would be delaying some of its planned multibillion-dollar investments in new EV and battery production capacity due to significant downward pressure on prices. Despite this delay, Ford remains committed to retooling its Ontario plant for EV manufacturing, a promise made during contract negotiations in 2020 with Canada’s Unifor union. The overhaul of the Oakville assembly plant is still on track to begin in the second quarter of this year as scheduled.

In a similar move, General Motors revealed in October that it would also be delaying production of electric pickup trucks at its Orion Township plant in Michigan by a year. These decisions reflect the evolving landscape of the automotive industry as companies navigate changing market dynamics and technological advancements.

This information includes material sourced from Reuters and the Associated Press, providing valuable insights into the current state of affairs in the automotive industry.