Ford postpones release of three-row electric SUV and next EV truck model

Ford, the second largest automaker in the United States by sales, is postponing the launch of its new three-row electric vehicles it will produce at its assembly complex in Oakville, Ontario until 2027, pushing back from the initial target of 2025. The company will also push back the release of a brand-new EV truck manufactured at a new facility in western Tennessee to 2026. Ford had previously stated that production would start in late 2025 with a goal of building up to 500,000 electric trucks annually.

In a statement, Ford mentioned that the delay “will allow for the consumer market for three-row EVs to further develop and enable Ford to take advantage of emerging battery technology.”

While the rollout of EVs is being adjusted, Ford “is increasing its hybrid electric vehicle offerings. By the end of the decade, the company aims to provide hybrid powertrains across its entire Ford Blue lineup in North America.”

This decision comes as the growth of U.S. electric vehicle sales slowed to 2.7% in the first quarter of the year, significantly lower than the 47% surge that fueled record sales and a 7.6% market share last year. Overall, new vehicle sales increased by almost 5%, causing the EV market share to drop to 7.1%.

On the other hand, hybrid sales saw a 45% increase from January through March, while plug-in hybrids experienced a 34% growth.

During a discussion with investors last year, Ford’s Chief Financial Officer, John Lawler, announced the delay of some of the planned multibillion-dollar investments in new EV and battery production capacity, citing “tremendous downward pressure” on prices.

Ford had made a commitment during contract negotiations in 2020 with Canada’s Unifor union to reconfigure the Ontario plant for EV production. The transformation of the Oakville assembly plant is expected to commence in the second quarter of this year as scheduled.

General Motors also announced in October that it would delay the production of electric pickup trucks at its Orion Township plant in Michigan by a year.

Material from Reuters and the Associated Press was used in this report.