Ford’s first affordable EV is a new electric pickup, but there’s more

Ford (F) announced major changes to its upcoming EV plans, including two new pickups. Ford’s first affordable EV based on its new platform will be an electric pickup followed by its next-gen “Project T3.” Meanwhile, Ford is leaning more into hybrids. Instead of the planned all-electric three-row SUV, Ford plans to launch a new family of hybrids.

“We are committed to innovating in America, creating jobs and delivering incredible new electric and hybrid vehicles,” Ford CEO Jim Farley said on Wednesday.

Ford is adjusting its vehicle roadmap to include a broader range of electrified options, with a focus on hybrid tech.

The move comes as Ford looks to cut costs and expand in markets where it believes it has a competitive advantage, such as software and commercial vehicles.

“We’re committed to creating long-term value by building a competitive and profitable business,” Ford’s CFO, John Lawler, explained.

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The first of Ford’s next-gen EVs will be a new digitally advanced commercial electric van. Ford’s new EV van will be assembled at Ford’s Ohio Assembly Plant starting in 2026.

In 2027, Ford will launch a new electric truck, the first on its upcoming low-cost platform. Ford’s skunkworks team in California is leading its next-gen vehicle development while “bending the cost curve on electric vehicles.”

Ford’s affordable EV pickup is designed for “customers who want more for their money” including longer range, more useability and utility.

The team is using a systems integration approach to slash costs and improve efficiency. Ford said the strategy “will go deeper into the supply chain and benchmark cost against the best competitors in the world.”

“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,” Farley said on Wednesday.

Ford has recruited talent from all over the industry, including many former Tesla, Rivian, Lucid, and Apple employees over the past several months.

The affordable EV pickup will be followed by Ford’s next-gen electric truck, “Project T3.” Ford said the electric pickup will build on its century-long heritage of truck leadership, including the F-150 Lightning.

Ford will launch the new EV pickup in the second half of 2027, two years later than initially expected.

After taking in feedback from Lightning customers, Ford claims the new truck will “offer features and experiences never seen on any Ford truck.” This will include bi-directional charging and improved aerodynamics. The EV pickup will still be built at Ford’s BlueOval City EV Center in Tennessee.

Ford said the delay will enable it to take advantage of lower-cost battery tech and other cost breakthroughs.

After delaying its planned three-row electric SUV in April, the project is now being canceled. It was postponed until 2026 earlier this year, but now Ford says it will focus on a new family of electrified three-row SUVs, which will include hybrid tech. Ford is also planning to launch hybrid options for its next-gen F-Siereis Super Duty pickups.

Ford also announced it has realigned EV battery sourcing to cut costs and improve capital efficiency. “If you are not competitive on battery cost, you are not competitive,” Farley explained.

Ford is moving Mach-E production to Holland to qualify for IRA benefits. Meanwhile, Ford will begin producing cells at BlueOval City in Tennessee in late 2025, while LFP battery production is on track for 2026 in Michigan.

In the first half of 2025, Ford will give an update on its electrification, tech, profitability, and capital requirements.

The changes come after Ford’s electric vehicle losses reached $2.5 billion through the first half of 2024.