Ford Motor recently announced that, in line with carbon reduction principles, it will adjust the launch pace of electric vehicle models, optimize the battery procurement plan in the United States for cost-effectiveness, and expand its technology route by introducing more models that adopt hybrid technology, thereby improving the capital efficiency of the electric vehicle business, reducing capital expenditure, and enhancing profitability.
1. Adjusting the Launch Pace of Electric Vehicle Models
Ford will focus on models and segments with competitive advantages for the next generation of electrified and digitally advanced vehicles—commercial vans, mid-size and large pickup trucks, and long-range SUVs—and will reduce costs and increase driving range according to customer needs.
In the fully electric product portfolio, Ford plans to introduce a brand-new digital commercial van, which will begin production in Ohio in 2026; followed by two new pickup trucks in 2027—one based on the platform designed by Ford's California skunkworks team and one next-generation truck to be assembled in Tennessee. Specifically:
• 2026: Electric Commercial Vehicle
The launch of Ford's next-generation electric vehicles will start with an electric commercial van. This van will be assembled at Ford's Ohio Assembly Plant in 2026.
Ford, with the best-selling electric van E-Transit in the United States, will leverage its strong presence in the electric commercial vehicle sector to promote the transition of commercial customers to electric vehicles such as E-Transit and F-150 Lightning Pro.
• 2027: Affordable Mid-Size Electric Pickup
Ford's skunkworks team, established in California in 2022, will focus on changing the company's approach to the development of the next generation of vehicles and flattening the cost curve of electric vehicles, committed to building a low-cost, highly efficient electric vehicle platform. The team adopts a system integration approach across design, engineering, supply chain, and manufacturing to fundamentally rethink the full vehicle manufacturing of electric vehicles. By reducing costs and optimizing complex processes, Ford will penetrate deeper into the supply chain with this approach to reduce costs and enhance market competitiveness.
The first affordable electric vehicle on this new platform will be a mid-size electric pickup truck launched in 2027, which is expected to meet the needs of customers who want to save money—offering a longer driving range, more practicality, and more usability.
• Second Half of 2027: Next-Generation Electric Truck
Ford's next-generation electric truck will be based on the previous best-selling electric truck in the United States, the F-150 Lightning.
The groundbreaking electric truck, code-named "Project T3," is expected to be launched in the second half of 2027. Ford claims that this electric pickup will draw on all customer experiences from the F-150 Lightning and offer unprecedented features and experiences, including upgraded bi-directional charging capabilities and advanced aerodynamics. The truck will be assembled at the Tennessee Electric Vehicle Center in BlueOval City.
2. Battery Procurement Plan
Ford will also adjust its U.S. battery procurement plan to reduce costs, maximize capacity utilization, achieve localization of production, qualify for tax credits, and lower the overall costs of the electric vehicle portfolio, thereby flattening the cost curve of electric vehicles.
Ford emphasizes that as Chinese competitors leverage their advantaged cost structures, including vertical integration, low-cost engineering, multi-energy advanced battery technology, and digital experiences, to expand their global market share, the electric vehicle market is rapidly evolving. However, unlike the first generation of electric vehicle owners, the new generation of electric vehicle consumers is more cost-conscious, making it very necessary to adjust the cost structure in the global competition.
Ford President and CEO Jim Farley said that affordable electric vehicles start with affordable batteries. If the battery cost is not competitive, the car is not competitive.
Intelligent mediation of capacity utilization and localization production are key to reducing costs. Specifically,
• Ford and LGES plan to transfer some Mustang Mach-E battery production from Poland to Holland, Michigan, in 2025 to qualify for tax credits;
• The BlueOval SK joint venture's Kentucky 1 plant will start manufacturing cells for the current E-Transit with enhanced range and F-150 Lightning from mid-2025;
• BlueOval SK at BlueOval City in Tennessee will supply cells for Ford's new electric commercial van starting from late 2025, which will be produced at Ford's Ohio Assembly Plant. The same cells will later power the next-generation electric truck assembled at BlueOval City and future emerging technology electrified vehicles.
In addition, Ford's BlueOval Battery Park in Michigan is expected to start producing lithium iron phosphate (LFP) batteries in 2026—this will be America's first automaker-backed LFP battery plant, which will qualify for IRA tax credits and further help Ford reduce battery costs.
3. Broaden Technology Routes and Adopt Hybrid Technology
In addition to adjusting the pace of product launches and readjusting battery procurement, Ford now plans to adopt hybrid technology in its next-generation three-row SUVs. Due to this decision, the company will take a special non-cash charge of about $400 million for the write-down of certain product-specific manufacturing assets for the previously planned all-electric three-row SUVs, which Ford will no longer produce. In addition, this plan will lead to additional expenses and cash expenditures of up to $1.5 billion.
Furthermore, the next-generation F-Series Super Duty pickup will also draw on the technology of Ford's F-150 and Maverick hybrid trucks.
From January to July of this year, Ford's pure electric vehicle sales reached 52,400 units, a year-on-year increase of 63.9%. However, according to Ford's financial report, due to intensified competition and continuous industry price pressure, the Ford Model e business unit's losses in the first two quarters of this year were $1.3 billion and $1.1 billion, respectively, and Ford expects the Model e unit to lose up to 5 to 5.5 billion US dollars for the whole year.
The financial status of losses, coupled with the competitive pressure of the declining market, may be the main reason for Ford's strategic adjustment. Ford's Vice Chairman and Chief Financial Officer John Lawler said that an important driver to improve profitability is to accelerate the mix of battery production in the United States, and only with locally produced batteries can tax credits be obtained. In addition, considering the strategic options being advanced and the growing demand for hybrid vehicles, the proportion of Ford's annual capital expenditure dedicated to pure electric vehicles will drop from about 40% to 30%.
