If the parade of new electric SUVs has left you feeling unimpressed, you might want to thank Ford for steering away from the trend. Recently, the company announced that it would be adjusting its electrification approach by reducing its budget for purely electric vehicles by nearly 40 percent and investing those funds into hybrid models. Consequently, the launch of the next-generation F-150 Lightning pickup has been postponed, and a planned three-row electric SUV will now be developed as a hybrid instead.
However, this does not mean Ford is abandoning electric vehicles. The new Lightning is now expected to arrive in 2027, and it will launch alongside a battery-electric midsize pickup. This new model will be among the first innovations from a specialized team that Ford CEO Jim Farley established in California two years ago. Their mission: to create affordable electric vehicles that can compete with both Tesla and Chinese manufacturers.
Meanwhile, a fully electric commercial van is set to be released in 2026, although it’s unclear whether this vehicle will replace or augment the existing E-Transit. Essentially, as demand for electric vehicles has tapered off, Ford has chosen to focus on trucks and fleet solutions, where it still perceives potential.
Cost savings are not part of the equation for Ford, as these cancellations and delays are projected to cost the company approximately $1.9 billion. Additionally, because the factory intended for the production of the EV SUV will need to be retooled to manufacture traditional internal combustion engine trucks, Ford may incur another $1.5 billion in manufacturing-related costs.
In addition to the hybrid three-row SUV, Ford plans to introduce more electrified versions of its current lineup. CEO Jim Farley believes that this adjusted timeline will enhance the company’s competitive pricing and profitability. He expects that the new electric trucks will be profitable within a year of their release.
“This represents a significant shift for us, and we’re not making this pivot without thorough research to ensure it’s the right strategy,” Farley expressed. “I’m very confident.”
Ford is expected to reveal further updates regarding its electric vehicle strategy in the first half of next year.
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