Ford said Wednesday that as it adapts to the changing electric vehicle environment, it plans to launch more hybrid models and reduce production of a previously announced battery-electric vehicle.
The automaker said its revised roadmap is aimed at lowering prices, particularly for electric vehicles, whose buyers are more cost-conscious today compared with early adopters of previous years.
The new roadmap also aims to capitalize on rising demand for hybrids. A direct result of this will be a reduction in investment in electric vehicles from the current level of around 40 percent of Ford’s annual capital expenditure to 30 percent.
3-row electric SUV out, mid-size electric truck in
Ford confirmed that new electric vehicles in the pipeline will include a van to be built in Ohio starting in 2026, followed by midsize and full-size pickups in 2027. A previously announced three-row SUV originally planned for 2025 has been canceled. Ford said it has invested $400 million in the three-row SUV so far and that the final cost of its delayed product plan could be as high as $1.5 billion.
The midsize truck will be based on a new low-cost EV platform that Ford says was developed by a “skunkworks” team in California and will feature the automaker’s BlueCruise automated driver assistance feature. The platform will be used for several vehicles, including passenger and commercial vehicles, starting with the midsize truck.
The full-size truck, codenamed Project T3, is intended to replace the F-150 Lightning. It will be built in Tennessee and has been described by Ford CEO Jim Farley as the “Millennium Falcon of pickup trucks.” The full-size truck was originally scheduled to launch in 2025, but Ford said Wednesday that the delay will allow the automaker to capitalize on lower-cost battery measures and other cost advantages while giving the market more time to adjust to electric vehicles.
Cheaper batteries are the key
One specific measure Ford will take to reduce battery costs is to manufacture cheaper lithium iron phosphate batteries in the U.S., which means they will qualify for Inflation Reduction Act benefits. Ford also announced Wednesday that it will move production of batteries for the Mustang Mach-E from Poland to the U.S., suggesting the vehicle will remain in the market and should continue to qualify for Inflation Reduction Act tax credits.
Ford is also planning new hybrids, especially in larger segments where battery costs remain a challenge, according to the automaker. Ford specifically mentioned SUVs with three rows of seats that would offer hybrid powertrains, potentially covering the Explorer and Expedition segments.
Ford also hinted at a hybrid option for the next-generation F-Series Super Duty, which the automaker said would offer a range of powertrain options.
Ford plans to provide an update on its electrification plans in the first half of 2025.
