Ford is facing challenges in its electric vehicle (EV) strategy, particularly due to steep depreciation rates of up to 50% in the first year and competitive pressures from Chinese automakers. In response, Ford is adjusting its approach to EVs, prioritizing profitability and efficiency. The company has decided to cancel its three-row electric SUV and delay the launch of its next-generation electric pickup, the T3 truck, to the second half of 2027. This truck was originally planned to begin production in 2025 at Ford’s Tennessee Electric Vehicle Center.
Ford is also working on introducing a fully electric commercial van by 2026 and is developing multiple hybrid technologies to offer a broader range of powertrain options. Despite these efforts, Ford acknowledges that there is still demand for traditional gas and diesel vehicles, and it plans to continue offering them.
In a press statement, Ford emphasized the need for its EVs to be profitable within 12 months of launch. The company is also focusing on developing a cost-effective and competitive global structure, especially as more EVs enter the market and regulatory requirements tighten.
This strategic shift is not unique to Ford; other automakers like General Motors and Honda have also adjusted their EV plans, with GM now focusing more on hybrids. Similarly, VW of America advocates for a balanced approach between electric and traditional vehicles.
Ford’s overall goal is to transform into a more profitable and efficient business while adapting to market demands and the evolving landscape of vehicle electrification.
