Ford Motor Company has announced a strategic overhaul to its North American electric vehicle (EV) roadmap, focusing on affordable electrification options and domestic battery production. The automaker’s revised plan emphasizes lowering prices, extending vehicle ranges, and leveraging hybrid technologies to accelerate customer adoption of electric and electrified vehicles.
Ford’s updated strategy will prioritize the rollout of a new digitally advanced commercial van in 2026, followed by two next-generation electric pickup trucks in 2027. In addition, the company plans to realign its U.S. battery sourcing to reduce costs and increase capacity utilization. These changes aim to support current and future EV production while ensuring profitability and capital efficiency.
“We are committed to innovating in America, creating jobs, and delivering incredible new electric and hybrid vehicles that make a real difference in CO2 reduction,” said Jim Farley, Ford President and CEO.
In light of pricing pressures and increased competition, particularly from Chinese manufacturers, Ford will scale down its capital expenditures on pure electric vehicles from 40% to 30% annually. The company will also shift its focus to hybrid technology, integrating it into upcoming models like its three-row SUVs. This decision will lead to a non-cash charge of approximately $400 million due to the discontinuation of previously planned all-electric three-row SUVs.
The first vehicle off Ford’s newly developed low-cost, highly efficient EV platform will be a mid-sized electric pickup, set to launch in 2027. Additionally, the company is retiming the release of its next-gen electric truck, code-named “Project T3,” to late 2027 to incorporate more cost-effective battery technology.
Ford’s commitment to U.S.-based manufacturing is evident in its battery production plans. Starting in 2025, the company will shift Mustang Mach-E battery production to Michigan and enhance its BlueOval SK joint venture’s Kentucky plant to produce cells for the E-Transit and F-150 Lightning. By 2026, Ford’s BlueOval Battery Park Michigan will begin producing lithium iron phosphate batteries, further reducing costs and qualifying for Inflation Reduction Act benefits.
John Lawler, Ford Vice Chair and CFO, emphasized the company’s focus on profitability, stating, “With pricing and margin compression, we’ve adjusted our product and technology roadmap to meet our goal of reaching positive EBIT within the first 12 months of launch for all new models.”
Ford is set to provide an update on its electrification and financial strategies in early 2025.
