Ford Motor Company said it is taking additional actions to add more propulsion choices for customers that generate lower CO2 emissions. According to the manufacturer, the plan includes adjusting the company’s North America vehicle roadmap to offer a range of electrification options designed to speed customer adoption – including lower prices and longer ranges. In its fully electric portfolio, Ford said it will prioritize the introduction of a new digitally advanced commercial van in 2026, followed by two new advanced pickup trucks in 2027 and other future affordable vehicles. Ford said it also realigned its U.S. battery sourcing plan to reduce costs, maximize capacity utilization, and support current and future electric vehicle production.

“We’re committed to creating long-term value by building a competitive and profitable business,” John Lawler, Ford vice chair and chief financial officer, said. “With pricing and margin compression, we’ve made the decision to adjust our product and technology roadmap and industrial footprint to meet our goal of reaching positive EBIT within the first 12 months of launch for all new models.”

In addition to adjusting the cadence of product launches and realigning battery sourcing, Ford said it plans to leverage hybrid technologies for its next three-row SUVs. As a result of this decision, the company said it 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. These actions may also result in additional expenses and cash expenditures of up to $1.5 billion and the company will reflect those in the quarter in which they are incurred, as a special item.

Lawler said an important enabler to improve profitability is accelerating the mix of battery production in the U.S. that will qualify for the advanced manufacturing tax credit. Also, given the propulsion options, and increasing demand for hybrids, Ford’s mix of annual capital expenditures dedicated to pure electric vehicles will decline from about 40% to 30%, he said.

The rollout of Ford’s next generation of electric vehicles begins with a commercial van that will be assembled at Ford’s Ohio assembly plant starting in 2026, according to the manufacturer.

Ford’s electric vehicle platform

In 2022, Ford established a skunkworks team in California focused on changing the company’s approach to next-generation vehicle development and bending the cost curve on electric vehicles, it said. According to Ford, the team takes a systems-integration approach across design, engineering, supply chain and manufacturing to fundamentally rethink the full vehicle.

“We recruited the most technically skilled and creative professionals from inside and outside Ford to drive a radical change in how we develop an electric vehicle,” Jim Farley, Ford president and CEO, said. “The work of this highly talented team has evolved into a critical enabler of our electric vehicle strategy. These electric vehicles will be lower cost, and not compromised in any way.”

According to Ford, the first vehicle of this platform will be a mid-sized electric pickup launching in 2027 that is expected to cater to customers who want more for their money – more range, more utility, more useability.

Next-gen electric truck

Ford said its next-generation electric truck will build on the company’s F-150 Lightning. Ford is retiming the launch of its electric truck, code-named “Project T3,” to the second half of 2027. The truck will offer features including upgraded bi-directional charging capability and advanced aerodynamics, Ford said. The truck will be assembled at BlueOval City’s Tennessee electric vehicle center.

According to Ford, retiming the launch allows the company to utilize lower-cost battery technology and take advantage of other cost breakthroughs while the market continues to develop.

Broader electrification choices

Ford said it will develop a new family of electrified three-row SUVs which will include hybrid technologies that can offer efficiency, performance benefits and emissions reductions versus pure gas vehicles and extend the range of the vehicle on road trips relative to pure electric vehicles. In addition, Ford said the next-generation F-Series Super Duty pickup will have a range of propulsion options, building on Ford’s hybrid truck sales leadership with the F-150 and Maverick.

Smart capacity utilization and localization

Ford said it realigned battery sourcing to support both electric vehicle and other emerging electrified vehicle applications to reduce costs, improve capital efficiency, and qualify for Inflation Reduction Act production and consumer tax credits.

“An affordable electric vehicle starts with an affordable battery,” Farley said. “If you are not competitive on battery cost, you are not competitive.”

Ford and LG Energy Solutions are targeting to move some Mustang Mach-E battery production from Poland to Holland, Michigan, in 2025 to qualify for Inflation Reduction Act benefits, the manufacturer said.

The BlueOval SK joint venture’s Kentucky 1 plant will manufacture cells for the current E-Transit, and F-150 Lightning beginning mid-2025. Ford said BlueOval SK at BlueOval City in Tennessee will produce cells starting in late 2025 for Ford’s new electric commercial van to be built at Ford’s Ohio assembly plant. According to Ford, those same cells will be sourced to later power the next-generation electric truck to be assembled at BlueOval City and future emerging technology electrified vehicles.

Ford said lithium iron phosphate (LFP) battery production is on track to begin in 2026 at BlueOval Battery Park Michigan in order to qualify for Inflation Reduction Act benefits.

Ford said it will provide an update on its electrification, technology, profitability and capital requirements in the first half of 2025.