Ford Makes Large Change To EV Strategy
Ford is pushing back the launch of two key next-generation large electric vehicles as the automaker adjusts its strategy and pivots toward smaller, more affordable EVs.
Key Points
- Ford has delayed the launch of its next-gen full-size electric pickup and E-Transit van to 2028, shifting focus to smaller, more affordable EVs.
- CEO Jim Farley says U.S. EV demand is strongest in the commuter segment, prompting Ford to scale back plans for larger electric models.
- The company faces ongoing cost pressures, quality issues, and expects up to $5.5B in EV and software losses for 2025.
The automaker confirmed to Reuters it has notified suppliers that its next-generation full-size electric pickup—originally slated for production in 2027 at the BlueOval City plant in Tennessee—has been pushed back until 2028 instead. Production of the next E-Transit van in Ohio has also been delayed from 2026 to 2028.
Earlier this year, Ford CEO Jim Farley admitted that EVs are not well-suited for heavy towing, long-distance travel, or off-roading, which is likely a prime driver in this most recent strategy shift.
"For larger retail electric [vehicles], the economics are unresolvable. These customers have very demanding use cases for an electric vehicle," Farley said during the automaker's earnings call in February.
"They tow, they go off road, they take long road trips. These vehicles have worse aerodynamics and they're very heavy, which means very large and expensive batteries. Retail customers have shown that they will not pay any premium for these large EVs, making them a really tough business case given the expense in the batteries."
In a statement, Ford said the F-150 Lightning and E-Transit “continue to meet today’s customer needs” and that the company will remain “nimble” in adjusting launch timing to better align with demand and improve profitability. The delays follow Ford’s earlier cancellation of a planned three-row electric SUV.
The decision comes amid increased competition from Chinese automakers, who are aggressively undercutting global rivals on EV prices—although that sounds like a convenient scapegoat—I'm not so sure how much global Chinese EV prices have to do with Ford's decision to cancel a full-size truck EV for American shoppers.
The automaker, which has struggled with quality issues and high recall rates, has projected losses of up to $5.5 billion in its EV and software operations for 2025.
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An experienced automotive storyteller and accomplished photographer known for engaging and insightful content. Michael also brings a wealth of technical knowledge—he was part of the Ford GT program at Multimatic, oversaw a fleet of Audi TCR race cars, ziptied Lamborghini Super Trofeo cars back together, been over the wall during the Rolex 24, and worked in the intense world of IndyCar.
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The US Big 3 get 30 to 40% of revenue from sales outside of the USA. Chinese EV's have rapidly evaporated that market with Ford's CEO calling it an "extinction level event". You can't compete with $15k EVs by building $80k EV trucks...