Ford scraps electric SUV family for hybrid, refocusses on EV commercials

The Ford Motor Company has scrapped its plans to produce a family of three-row battery electric SUV models in favour of hybrid powertrains.

The move comes as Ford acknowledges China’s competitive advantage, the launch of more competitor products, and consumer sentiment towards the cost of passenger battery electric vehicles.

Ford expects the scrapping of the electric three-row SUV family to cost around US $1.5 billion. However, the manufacturer will continue focusing on commercial electric vehicles. 

It plans to introduce an all-new commercial van that will begin production in 2026 in Ohio. This will be closely followed in 2027 by two new pickup trucks—a medium-sized pickup based on the platform designed by Ford’s California Skunkworks team and a next-generation truck to be assembled in Tennessee.

Ford is retiming the launch of its new mid-size electric truck, code-named “Project T3,” to the second half of 2027. Taking all the learnings from F-150 Lightning customers, it will offer bidirectional charging capability and advanced aerodynamics. 

The Project T3 truck will be assembled at BlueOval City’s Tennessee Electric Vehicle Centre. The next-generation F-Series Super Duty pickup will have a range of propulsion options, building on Ford’s hybrid F-150 and Maverick production. 

Ford’s BlueOval SK joint venture’s Kentucky plant will manufacture cells for the current E-Transit with enhanced range and F-150 Lightning beginning mid-2025. BlueOval SK in Tennessee will produce cells starting in late 2025 for Ford’s new electric commercial van, which will be built at Ford’s Ohio Assembly Plant. 

Those same cells will later be sourced to power the next-generation electric truck assembled in Tennessee and future electrified vehicles. 

This common cell strategy gives Ford significant sourcing flexibility for manufacturing across multiple segments and electrified platforms as the market evolves.

Lithium iron phosphate (LFP) battery production will begin in 2026 at BlueOval Battery Park, Michigan – America’s first OEM-backed LFP battery plant.

Ford and LG Energy Solutions want to move some Mustang Mach-E battery production from Poland to Holland, Michigan, in 2025 to qualify for Inflation Reduction Act benefits.

Ford will provide an update on its electrification, technology, profitability and capital requirements in the first half of 2025.