Ford Motor is revising its electric vehicle strategy, canceling its planned three-row SUV and postponing the next-generation electric pickup. Instead, the company will introduce a new pickup and van to its future lineup. This shift is in response to slower-than-expected growth in EV demand.
Ford will record a special non-cash charge of approximately $400 million for the write-down of assets related to the canceled SUV. This could also lead to additional expenses of up to $1.5 billion.
The downturn in EV demand has led several automakers, including Ford and General Motors, to delay or scrap plans to avoid unnecessary spending on less popular models.
Ford CEO Jim Farley highlighted the company's California-based team working on affordable EV technology. The first vehicle from this initiative, a mid-size electric pickup, is set for release in 2027.
Ford’s stock rose 1.4% in premarket trading following the announcement.
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