Ford Delays EV Plant, Cancels Electric SUV Amid Strategy Shift

By Kevin Joseph August 21, 2024

Production Delay: Ford has announced a delay in the production of their highly anticipated next-generation all-electric pickup at their Tennessee plant.

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Cancelled Plans: Plans for the three-row electric SUV have been canceled.

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Hybrid Models: Ford is committed to advancing hybrid model development.

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Commercial EVs: Let’s keep an eye on electric commercial vehicles, including an exciting new van coming in 2026 and two EV pickups hitting the market by 2027.

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Upcoming Vehicles - Full-Size Pickup: Expected to be manufactured at the Tennessee plant in 2027.

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Midsize Truck: Designed by a team of experts based in California.

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Financial Implications - Non-Cash Charge: Ford will be facing a $400 million charge due to the write-down of specific assets.

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Additional Costs: There may be some potential additional expenses of up to $1.5 billion.

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Strategic Adjustments - Capital Expenditure: Transitioning from 40% to 30% allocation towards all-electric vehicles.

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Battery Production: Battery cell production at the Tennessee site is scheduled to begin in 2025.

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Market Response - Customer Feedback: Modifications made to meet the growing demand for a wider range of electric options.

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Profitability Focus: Every new vehicle launch must have a clear path to profitability within the first year.

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Current Lineup - Ongoing Production: Continuation and updates for the Ford Mustang Mach-E and F-150 Lightning.

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Investor Update - Future Plans: Ford plans to provide investors with an update on electrification, technology, profitability, and capital requirements during the first half of 2025.

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