Ford Revamps EV Strategy Amid High Costs

In a strategic pivot, Ford Motor Co. is shelving its plans for an all-electric three-row SUV, opting instead for hybrid models due to profitability concerns and intense competition. The company will delay its next-generation electric truck, Project T3, to 2027, leveraging lower-cost battery technology to enhance profitability. Ford's EV strategy will now focus on electric pickup trucks and commercial vans, with a new mid-size electric pickup and a commercial van set for 2026 and 2027, respectively. This shift includes a $400 million write-down of manufacturing assets and anticipated additional expenses of up to $1.5 billion. Additionally, Ford will reduce its capital spending on EV developments from 40% to 30% of its annual budget. The company aims to make all new vehicles profitable within 12 months of launch.