DETROIT – Ford Motor is delaying manufacturing of a brand new plant in Tennessee to provide a next-generation all-electric pickup truck and canceling plans for a three-row electrical SUV, the corporate mentioned Wednesday.
As a substitute, Ford mentioned it’s going to prioritize the event of hybrid fashions, in addition to electrical industrial autos similar to a brand new electrical industrial van in 2026, adopted by two EV pickup vehicles in 2027.
The pickups are anticipated to be a full-size truck, which might be produced on the Tennessee plant that is at the moment beneath development in 2027, and a brand new midsize pickup.
The actions are supposed to higher ship a capital-efficient, worthwhile electrical car enterprise, mentioned Ford CFO John Lawler. However, within the short-term, they are going to price the corporate.
Ford mentioned it’s going to incur a special non-cash charge of about $400 million for the write-down of sure product-specific manufacturing property, together with the cancellation of the three-row SUV.
The corporate mentioned the adjustments may additionally lead to further bills and money expenditures of as much as $1.5 billion. Ford will replicate these within the quarter by which they’re incurred, as a particular merchandise.
Automobile manufacturing on the new $5.6 billion Tennessee site was initially anticipated to start subsequent yr. The corporate mentioned it nonetheless expects to start battery cell manufacturing on the website in 2025.
The adjustments are the most recent for Ford amid slower-than-expected adoption of EVs in addition to automakers not having the ability to profitably produce the autos.
The brand new plans come roughly 5 months after Ford mentioned it would delay production of the three-row SUV and next-generation pickup, codenamed “T3.”
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