Ford Scraps Plan for Electric SUV, Prioritizes Hybrid SUVs
Ford has announced that it will not be launching a three-row, seven-seat electric SUV next year as originally planned. The company cited concerns over profitability within the first year of launch and the increasing cost-consciousness of electric car buyers. Additionally, Ford acknowledged the competition from numerous new electric vehicle choices hitting the market over the next 12 months. This decision could potentially cost the company $1.9 billion.
In response to this change in strategy, Ford will now focus on developing new hybrid three-row SUVs. The company plans to reduce its annual investment in electric vehicles from 40% to 30% of its total investment. This shift in priorities has also resulted in the delay of the ‘T3’ electric pick-up, which will now be released in the second half of 2027. The delay will allow Ford to adapt the model to use less expensive batteries, potentially making it more affordable for consumers.
While Ford reevaluates its electric vehicle plans in the US, the company is shifting its focus in Europe towards more affordable electric SUVs. The successors to the Ford Fiesta and Focus are rumored to be launched around 2026 and 2027, respectively. In the meantime, Ford will be introducing an electric Ford Puma, called the Gen-E, later this year.
Marin Gjaja, the chief operating officer of Ford’s Model E division, recently emphasized the importance of affordability in the company’s strategy. He stated that Ford needs to be affordable, differentiated, and profitable to succeed in the market. Gjaja acknowledged the challenge of competing in the affordable segment, particularly with low-cost manufacturing locations like China producing affordable vehicles. However, he expressed confidence in Ford’s ability to create an affordable platform that could be used to develop products for both the US and European markets.
In conclusion, Ford’s decision to scrap its plan for an electric SUV reflects the company’s recognition of the changing market dynamics and the need to prioritize profitability. By focusing on hybrid SUVs and affordable electric vehicles, Ford aims to meet the demands of cost-conscious consumers while remaining competitive in the evolving electric vehicle market.