Ford has killed its seven seater electric SUV, next full EV will be a van

Ford has decided to abandon its plans for a three-row electric SUV in favor of developing a hybrid model, responding to increasing competition from Chinese automakers, stricter regulations, and consumer demand for more affordable electric vehicles. This shift will incur a non-cash charge of $400 million and potentially lead to an overall cost of $1.5 billion. Consequently, Ford will reduce its investment in electric vehicle development from 40% to 30%. The company's upcoming projects include a new commercial electric van set for production in 2026, which will build upon the success of Ford’s existing electric models. Additionally, a mid-sized electric truck, known as ‘Project T3’, initially slated for release in 2025, has been rescheduled for the second half of 2027. This delay aims to capitalize on advancements in battery technology and market growth. The T3 is anticipated to feature innovative capabilities such as bi-directional charging. By transitioning the three-row SUV to a hybrid model, Ford aims to provide consumers with a vehicle that offers a better range than a fully electric option while also reducing emissions compared to traditional combustion engines. The decision underscores the necessity of competitive battery costs in making electric transportation viable. In the field of transportation, this development reflects a significant industry trend where companies are increasingly focusing on cost-effective solutions in the face of a rapidly evolving market. The pivot towards hybrids may be indicative of a broader strategy to balance between fully electric options and traditional vehicles during a transitional phase in energy consumption. Ford's emphasis on affordable battery production is particularly critical as it seeks to stay competitive in an environment where economic factors increasingly dictate consumer choices. The strategic move to manufacture batteries in the US also aligns with governmental incentives and positions Ford to respond more swiftly to market demands.