Ford is revamping its electric vehicle strategy, opting to focus on producing two new electric pickup trucks and a new commercial van instead of expanding its current lineup. According to the company, these new vehicles will be more affordable, offer longer ranges, and are expected to be profitable within a year of hitting showrooms.
In a significant shift, Ford has announced that it will delay production of its next-generation full-size electric pickup truck by 18 months, pushing back the timeline to 2027. The company will also cease development of fully electric three-row SUVs, opting instead to create gas-electric hybrids.
Ford’s Mustang Mach-E, a key player in its current EV lineup, was put through its paces on a test track at the Electrify Expo in north Denver last month. Despite its efforts, the company is currently losing millions on its current electric vehicles.
The new focus on electric pickup trucks will involve producing a mid-sized model based on new underpinnings developed by a small team in California. This change will require Ford to write down $400 million worth of its current assets and incur additional expenses of up to $1.5 billion.
Ford Shifts Focus to Electric Pickup Trucks and Vans (Image via Getty)
Ford’s chief financial officer, John Lawler, emphasized the company’s commitment to creating long-term value by building a competitive and profitable business. This move marks a significant shift for the company, which had previously invested heavily in electric vehicles.
The impact on the company’s bottom line will be substantial, with the write-down affecting its current financials. However, Ford is betting that its new focus on electric pickup trucks and vans will yield more successful and profitable vehicles.
With the auto industry undergoing significant changes, including the rise of electric vehicles, Ford’s decision to adapt and refocus its efforts is a sign of its commitment to staying competitive. As the company navigates this transition, investors and consumers alike will be watching closely to see how this shift plays out.
Ford’s new electric pickup trucks and vans may not be the most sexy or exciting developments, but they represent a significant shift in the company’s strategy and a crucial step towards creating a more profitable and sustainable business. As the company moves forward, it will be interesting to see how this new focus affects its overall performance and competitiveness in the market.
