DETROIT – Ford Motor is delaying production of a new plant in Tennessee to produce a next-generation all-electric pickup truck and canceling plans for a three-row electric SUV, the company said Wednesday.
Instead, Ford said it will prioritize the development of hybrid models, as well as electric commercial vehicles such as a new electric commercial van in 2026, followed by two EV pickup trucks in 2027.
The pickups are expected to be a full-size truck, which will be produced at the Tennessee plant that’s currently under construction in 2027, and a new midsize pickup.
The actions are meant to better deliver a capital-efficient, profitable electric vehicle business, said Ford CFO John Lawler. But, in the short-term, they will cost the company.
Ford said it will incur a special non-cash charge of about $400 million for the write-down of certain product-specific manufacturing assets, including the cancellation of the three-row SUV.
The company said the changes may also result in additional expenses and cash expenditures of up to $1.5 billion. Ford will reflect those in the quarter in which they are incurred, as a special item.
Vehicle production at the new $5.6 billion Tennessee site was initially expected to begin next year. The company said it still expects to begin battery cell production at the site in 2025.
The changes are the latest for Ford amid slower-than-expected adoption of EVs as well as automakers not being able to profitably produce the vehicles.
The new plans come roughly five months after Ford said it would delay production of the three-row SUV and next-generation pickup, codenamed “T3.”
This is breaking news. Please check back for additional updates.
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