Ford Cancels Plans for Fully-Electric Three-Row SUV, Shifts Overall EV Strategy

Ford Motor Co. announced Wednesday that it will be shifting to a new strategy for the development of electric vehicles (EVs), cancelling plans for an all-electric three-row SUV and delaying the roll out of a new full-size electric pickup truck.

Instead, the Michigan-based auto manufacturer is opting to pursue a gas-electric hybrid model three-row SUV that will allow for a greater driving range at a more affordable price.

At the same time, however, Ford will also be pursuing the introduction of a fully electric commercial van in 2026, as well as two fully electric pickup trucks in 2027.

That said, a “range of propulsion options” will be made available for the next generation F-Series Super Duty pickup truck.

The company will also be reducing the percentage of annual capital expenditures dedicated to “pure electric vehicles” from 40 percent down to 30 percent.

The upcoming gas-electric hybrid SUVs are described by Ford as offering “breakthrough efficiency, performance benefits and emissions reductions versus pure gas vehicles” and “extend[ing] the range of the vehicle on road trips relative to pure electric vehicles.”

Ford has reportedly not yet said whether or not it will be offering any plug-in hybrid options for these vehicles in the near future.

As a result of abandoning their plans to produce a fully electric three-row SUV, Ford will write down $400 million of its current assets and expects to have up to $1.5 billion in additional expenses as a result of this decision.

Ford has already lost $2.46 billion on EVs during the first half of this year, and as a result has seen reductions on the profits from its other gas-powered and commercial offerings.

“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 Ford President and CEO Jim Farley in a press release published Monday.

“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.

According to the Associated Press, EV sales nationwide have risen 7 percent during the first half of this year, compared to a 35.3 percent for gas-electric hybrids. 599,134 EVs were sold between January to June of this year, while 715,768 hybrids were sold during this same time period.

Ford’s decision to shift its plans for electrification comes as several environmental groups have sued the Maine Board of Environmental Protection (BEP) for rejecting a proposal that would have mandated that 82 percent of new car sales in the state be comprised of zero-emissions vehicles (ZEVs) by model year 2032.

Both fully-electric vehicles and plug-in hybrids would have been classified as ZEVs under this rule, while traditional gas-electric hybrids and gas-powered vehicles would have been excluded.

[RELATED: Maine BEP Rejects Controversial EV Mandate]

Involved in this lawsuit are the Conservation Law Foundation (CLF), Sierra Club, and Maine Youth Action (MYA).

The Plaintiffs are asking the Cumberland County Superior Court to declare that the State’s decision to reject this mandate was “arbitrary, capricious, and an abuse of discretion.”

[RELATED: Environmental Groups Sue Maine in Effort to Force Adoption of Controversial EV Mandate]

These groups are also seeking to have the Court require the State to adopt the Advanced Clean Cars II Program, or a comparable alternative, by November 1 of this year.

The court is currently tasked with considering the State’s motion to dismiss the case, as well as the Plaintiff’s response. As of this article’s publication, the court has not yet made a ruling on this motion.

Click Here to Read Ford Motor’s Full Press Release