DEARBORN (dpa-AFX) - Ford Motor (F) said that it is cancelling plans for an all-electric three-row SUV, and delaying production of a futuristic electric pickup truck at its new plant in Tennessee as part of its revised electric vehicle strategy.
'As we've learned in the marketplace, and we've seen where people have gravitated, we're going to focus in where we have competitive advantage, and that's on commercial land trucks and SUVs,' Ford CFO John Lawler said.
The Dearborn-based automaker will now prioritize the development of hybrid models as well as production of a new, all-electric commercial van in 2026, followed by two EV pickup trucks in 2027.
'Our focus here is to remake Ford into a higher-growth, higher-margin, more capital-efficient and durable business, and that means these vehicles need to be profitable,' Lawler continued.
'And if they're not profitable, based on where the customer is in the market is, we will pivot and adjust and make those tough decisions.'
The shift in strategy is expected to cost Ford a special noncash charge of about $400 million for the write-down of certain product-specific manufacturing assets, as well as additional expenses and cash expenditures of upto $1.5 billion.
Lawler also suggested that the company's future capital expenditure plans will decline from spending about 40 percent on all-electric vehicles to 30 percent.
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