See what’s clicking on FoxBusiness.com.
Ford is scrapping plans for an all-electric three-row SUV.
The company said Wednesday it will not produce the vehicle and instead plans to “utilize hybrid technology for our next three-row SUV.”
The company said the discontinuation of the SUV will result in an impairment of approximately $400 million in “certain product-specific manufacturing assets.”
The Ford Motor Company logo appears on the front grille of an electric Ford Transit vehicle as it charges at a dealership in Bristol, England, on March 5, 2023. (Matt Cardy/Getty Images/Getty Images)
Ford in April delayed the release date from 2025 to 2027.
The cancellations come as part of a broader update to Ford’s electrification strategy, which the company said will include changes to its North American vehicle roadmap and other measures.
Click here to get FOX Business on the go
Overall, Ford said it is “taking additional steps to deliver a profitable, capital efficient and growing electric vehicle business and add even more driving choices for customers with lower carbon emissions.”
Ford signage at a dealership in Richmond, California, on June 21. (David Paul Morris/Bloomberg via Getty Images/Getty Images)
Changes to the company’s vehicle roadmap include bringing a new all-electric commercial van to market in 2026, followed by two electric pickup trucks the following year.
Ford has announced that its planned 2027 midsize pickup will be built on a new affordable electric vehicle platform.
| Ticker | safety | last | change | change % |
|---|---|---|---|---|
| debt | Ford Motor Company | 10.85 | +0.16 |
+1.50% |
Meanwhile, with the next-generation “Project T3” truck due to go on sale later that year, Ford said the changes will “allow the company to take advantage of lower-cost battery technologies and other cost savings as the market continues to evolve.”
Ford unveils new Mustang and Bronco-style electric motorcycle
“We are focused on creating long-term value by building a competitive, profitable business,” Ford CFO John Lawler said in a statement about the company’s electric vehicles. “As price and margin compression continues, we have decided to align our product and technology roadmap, as well as our industrial base, to achieve our goal of all new models being EBIT positive within 12 months of launch.”
The badge was placed on a vehicle at a Ford dealership in New Lebanon, New York, on January 25th. (Angus Mordaunt/Bloomberg via Getty Images/Getty Images)
The company also outlined several steps it is taking to reduce costs associated with EV batteries and qualify for tax credits.
The company’s Ford Model e division posted revenue of $1.3 billion and an EBIT loss of $2.46 billion in the first half of 2024.
Overall, the company generated revenue of $90.6 billion during that same period, while net income for the first two quarters combined was $3.2 billion.
