Ford is canceling plans for an all-electric sport utility vehicle and will tighten its spending on EVs overall.
The Michigan-based automaker announced a slate of changes Wednesday that will trim Ford’s percentage of capital spending devoted to EVs from 40 percent of the company budget to 30 percent. Ford’s electric SUV, anticipated for 2027, will be scrapped in favor of a new hybrid option. The company will also delay the launch of a new electric pickup truck by 18 months.
“Our focus here is to remake Ford into a higher-margin, more capital-efficient and durable business,” Ford Chief Financial Officer John Lawler said in a media call Wednesday. “That means these vehicles need to be profitable, and if they’re not profitable based on where the customer is and the market is, we will pivot and adjust and make those tough decisions.”
The company will take roughly $1.9 billion in write-downs and special item charges due to the shift in EV manufacturing, Lawler said.
