Ford Motor Co. is making a strategic shift in its electrification plans, aiming to accelerate customer adoption of electric vehicles (EVs) while optimizing production and costs. The company announced its intention to broaden its electrification strategy, including introducing a full electric commercial van in 2026, followed by two new “advanced” electric pickup trucks in 2027.
One of these trucks will be a mid-sized electric pickup aimed at value-conscious customers, while the other, code-named “Project T3,” will launch in the second half of 2027. Ford promises that Project T3 will offer features and experiences “never seen on any Ford truck.”
To further enhance its EV strategy, Ford has also realigned its U.S. battery sourcing plan, focusing on reducing costs, maximizing capacity utilization, and supporting current and future EV production. This comprehensive approach is designed to ensure the long-term success of Ford’s EV endeavors.
In a surprising move, Ford has decided to utilize hybrid technologies for its upcoming three-row SUVs, a departure from its previous plan to make them all-electric. This adjustment, which will result in a special non-cash charge of approximately $400 million, is driven by a desire to optimize product offerings and cater to diverse customer preferences.
The changes in Ford’s strategy may lead to additional expenses and cash expenditures of up to $1.5 billion. Despite these adjustments, Ford’s overall annual capital expenditures dedicated to pure electric vehicles will be reduced from around 40% to 30%.
Ford CEO Jim Farley expressed the company’s commitment to innovation and job creation in the U.S., stating that these changes will enable Ford to deliver exceptional electric and hybrid vehicles that contribute significantly to CO2 reduction. He highlighted the company’s learning from its experience as the No. 2 U.S. electric vehicle brand, focusing on delivering cost-efficient designs and maximizing customer choice.
Ford’s revised electrification strategy represents a proactive approach to navigating the evolving automotive landscape, showcasing its commitment to sustainable mobility while prioritizing profitability and customer satisfaction. The introduction of new electric trucks and a van, coupled with the strategic use of hybrid technology, positions Ford as a key player in the growing electric vehicle market.
