Ford Revamps Electrification Strategy Which May Cost Up To $1.9B: Retail’s Not Too Enthusiastic

Ford, on Wednesday, announced a revamp of its electrification strategy that included ditching a previously planned all-electric three-row SUV, retiming the launch of its electric truck code-named “Project T3,” and introduction of a new family of electrified three-row SUVs which will include hybrid technologies.

Ford 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 will no longer be produced by the company. The firm expects additional expenses and cash expenditures of up to $1.5 billion.

Ford is also bringing down its mix of annual capital expenditures dedicated to pure electric vehicles from about 40% to 30%.

The firm said it is retiming the launch of its electric truck code-named “Project T3” to the second half of 2027 as it will allow the company to utilize lower-cost battery technology and take advantage of other cost breakthroughs while the market continues to develop.

The company will develop a new family of electrified three-row SUVs which will include hybrid technologies. Ford believes this can offer breakthrough efficiency, performance benefits and emissions reductions compared to pure gas vehicles while also extending the range of the vehicle on road trips relative to pure electric vehicles.

The auto-maker is prioritizing the introduction of a new digitally advanced commercial van in 2026, followed by two new advanced pick-up trucks in 2027 and other future affordable vehicles. The firm also realigned its U.S. battery sourcing plan to reduce costs, maximize capacity utilization, and support current and future electric vehicle production.

John Lawler, Ford vice chair and chief financial officer said that with pricing and margin compression, the company has decided to adjust its product and technology roadmap and industrial footprint to meet its goal of reaching positive EBIT within the first 12 months of launch for all new models.

Ford shares were trading over 2% higher on Wednesday in the wake of the announcement. However, retail sentiment on Stocktwits dipped into ‘bearish’ territory (39/100) from ‘neutral’ zone a day ago, accompanied by ‘high’ message volumes.

Some Stocktwits followers of Ford expressed skepticism about the firm’s decision on hybrid technologies.

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