Here’s why Ford cancels plans for 3-row all-electric SUV

Ford Motor Co. said Wednesday it will no longer make all-electric three-row SUVs and will instead produce hybrid SUVs, among other actions aimed at making its electric vehicle business profitable sooner.
The Dearborn, Michigan-based automaker said it will prioritize the introduction of a new, all-electric commercial van in 2026, followed by two new EV pickup trucks in 2027 and other future EVs aimed at affordability.
“This is really about us being nimble and listening to responses from customers,” John Lawler, Ford vice chair and chief financial officer, said on a call with media Wednesday morning. “What we’re understanding is that customers want more electrification choices.”
These actions will reduce Ford’s annual capital expenditures on pure EVs from about 40% to 30%, Lawler said.
Lawler said Ford is making these decisions based on whether a vehicle can be profitable within the first 12 months of launch. He said that wouldn’t be the case with the all-electric three-row SUV. As a result of that decision, Lawler said Ford will take a special non-cash charge of about $400 million for the write-down of certain product-specific manufacturing assets. These actions may also result in additional expenses and cash expenditures of up to $1.5 billion.
U.S. EV adoption is growing at a more sluggish pace than most automakers and experts had predicted. EV purchases are forecasted to represent about 8.3% of new car sales, according to Cox Automotive, a slight increase from last year when EV’s market share was 7.6%.
In the meantime, automakers like Ford are losing money on EVs. Ford’s electric vehicle business posted a loss of $1.1 billion in the second quarter.
“Our focus here is to remake Ford into a higher-growth, higher-margin, more capital-efficient and durable business, and that means these vehicles need to be profitable,” Lawler said. “And if they’re not profitable, based on where the customer is in the market is, we will pivot and adjust and make those tough decisions.”
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For example, Lawler said customers who would drive three-row SUVs are using them for long-range travel with their families and want more electrification choices, which is why the automaker pivoted to making that a hybrid vehicle.
Lawler said Ford will continue to sell its current lineup of EVs, which includes the F-150 Lightning pickup, the Mustang Mach-E SUV and commercial vans.
The rollout of Ford’s next generation of electric vehicles begins with a commercial van that will be assembled at Ford’s Ohio Assembly Plant, located in Avon Lake, near Cleveland, starting in 2026.
Ford’s full-size EV pickup, which will be assembled at BlueOval City’s Tennessee Electric Vehicle Center, will now launch in the second half of 2027, a delay of about 18 months.
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Ford is also planning to launch an “affordable” mid-sized EV pickup in 2027, which will be the first first vehicle on a new platform its developing.
Ford also said its planning to move some Mustang Mach-E battery production from Poland to Holland, Michigan, in 2025, helping it and its consumers qualify for tax credits under the U.S. Inflation Reduction Act.
Contact Adrienne Roberts: [email protected]