Ford delays production of new electric vehicle amid slowing market — still plans to 'build a full EV line-up'

Ford announced on Thursday that it will push back the production of its new electric vehicle as the market for EVs continues to slow.

The automaker had plans to unveil a new three-row electric SUV in 2025 but now says it will not begin production until 2027. The vehicle will be manufactured at its Oakville, Ontario, plant.

"The additional time will allow for the consumer market for three-row EVs to further develop and enable Ford to take advantage of emerging battery technology, with the goal to provide customers increased durability and better value," the automaker wrote in a recent press release.

Jim Farley, Ford's president and CEO, acknowledged that postponing production of the new EV would affect plant workers.

"We value our Canadian teammates and appreciate that this delay will have an impact on this excellent team," Farley stated. "We are fully committed to manufacturing in Canada and believe this decision will help us build a profitably growing business for the long term."

Ford vowed to work with the trade union to mitigate the impact on Oakville's workers.

Bev Goodman, president and CEO of Ford Canada, said, "We are committed to taking care of our valued Oakville employees through this transition."

"While this change requires a revision to the timeline, it will support a viable and growing future for our company, employees and dealers," Goodman added.

Ford previously declared that it would debut its new all-electric pickup truck in late 2025, Fox Business reported, but the latest company press release stated that customer deliveries will begin in 2026. According to the automaker, the truck's production at its Tennessee plant is "progressing on track."

The news outlet reported that Ford lost $4.7 billion on its EVs in 2023 and is projected to lose another $5-$5.5 billion in 2024. Despite the losses, Ford recently reaffirmed its commitment to developing its EV fleet.

"The company continues to invest in a broad set of EV programs as it works to build a full EV line-up. These initiatives support the development of a differentiated and profitably growing EV business over time while Ford serves customers with the right mix of gas, hybrid and electric vehicles based on demand today," Ford said Thursday.

The automaker also announced plans to expand its hybrid EV line-up.

"By the end of the decade, the company expects to offer hybrid powertrains across its entire Ford Blue lineup in North America. In the first quarter of 2024, Ford's electric vehicle sales increased by 86% and hybrid sales rose 42% versus a year ago," it added.

"As the No. 2 EV brand in the U.S. for the past two years, we are committed to scaling a profitable EV business, using capital wisely and bringing to market the right gas, hybrid and fully electric vehicles at the right time," Farley stated. "Our breakthrough, next-generation EVs will be new from the ground up and fully software enabled, with ever-improving digital experiences and a multitude of potential services."

Last month, the Biden administration rolled out the "strongest-ever" vehicle emission standards in an effort to push Americans away from gas-powered vehicles.

Farley responded to the Environmental Protection Agency's new regulations, stating, "The @EPA final rule is ambitious and challenging, and meeting these goals will require close public-private cooperation. @Ford is absolutely committed to lowering CO2 emissions while offering customers real choice across hybrid, plug-in hybrid and fully electric vehicles."

The United Auto Workers, which represents approximately 57,000 Ford workers, also supported the EPA's new standards.

"We reject the fearmongering that says tackling the climate crisis must come at the cost of union jobs. Ambitious and achievable regulations can support both. We call on the Biden Administration to hold automakers accountable so that this rule is not used as an excuse to cut or offshore jobs," the UAW said.

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