In a recent announcement, Ford has put some of its electric vehicle (EV) expansion plans on hold. The company had plans for a novel three-row electric SUV amid profitability concerns over its existing EV lineup. That was despite Ford moving ahead of Hyundai and Chevy as the most-sold EV brand in the United States.
The decisions are designed to “[understand] the customer, understanding how this is going to transition over time,” John Lawler, Ford’s CFO, told reporters on a media call. “It’s about providing them those choices that meet their duty cycles and their needs, and that is giving them the options between full battery electric vehicles, hybrid technologies.”
Ford is opting to manufacture more hybrid vehicles instead of a totally electric vehicle lineup. The three-row electric SUV will now be a hybrid, as well as a midsize pickup truck, which will follow shortly after.
The announcement comes amid the growing and sometimes “uneven” competition in the EV sphere.
Tesla is still the No. 1 EV brand in the country, and while Ford was No. 2, the gap between them has been massive. Tesla moved over 654,000 units in 2023, while Ford didn’t crack 73,000. Ford executives continually emphasize their concerns about Chinese EVs in the global auto market as they are notorious for being cheaply assembled but incredibly affordable.
However, EVs aren’t being shut out of the whole picture. Ford said it still plans to send several to European partners this year, but the North American strategy will now offer more zero-emission choices, not just battery EVs.
Photo Courtesy Ford
The decision is particularly interesting considering Ford’s placement in the EV sales rankings. However, it is not that surprising. Ford stopped shipping its F-150 Lightning electric pickup in February and held them for “quality inspections” for nine weeks — the company restarted shipping them in April.
The Lightning factory in Michigan also cut production for what Ford said was slower demand. Other electric pickups, like the Chevy Silverado EV and GMC Sierra EV, have also been launched recently.
According to InsideEVs, the automaker is planning the T3 electric truck to be built in its BlueOval City, Tennessee, EV factory in 2027.
There are also no plans to cancel production of the Mustang Mach-E and Lightning truck. They will also use a new type of battery model.
Suppliers like LG and SK, both South Korean conglomerates, will remain part of the equation. Lithium-ion phosphate batteries will be produced at BlueOval Battery Park in Michigan, and they will qualify for Inflation Reduction Act benefits. That will help Ford save money in the long run.
That’s essentially what the move to hybrid vehicle production is: cost saving. Ford put $400 million into developing the future electric three-row SUV, taking the loss as a business expense. Its EVs are competing with Tesla in terms of performance or charging network access, even with the North American Charging Standard starting its official rollout. Ford is one of several members joining the Supercharger network.
Photo Courtesy Red Bull Racing
To use an F1 metaphor — given that Ford is becoming an official engine supplier for Red Bull Racing in 2026 — Tesla is Max Verstappen, and Ford is Charles LeClerc. Tesla will likely always finish on pole (1st place) without real challengers. Ford will do their best to get into pole position but always falls back into the pack for various reasons.
Ford still plans to make affordable EVs to get a leg up on some rivals, specifically Chinese models. They are planning a whole new platform for this venture. Jim Farley, Ford’s president and CEO, has been outspoken about the costs of building high-performance EVs, yet Ford is still working to make more available.
“We learned a lot as the No. 2 U.S. electric vehicle brand about what customers want and value and what it takes to match the best in the world with cost-efficient design, and we have built a plan that gives our customers maximum choice and plays to our strengths,” Farley said in the EV strategy shift press release.
