Automaker cancels seven-seater SUV and postpones pickup, but assures that change is route adjustment, not giving up
Ford has emphatically dismissed the idea that it would be backtracking on its electrification plans, even after announcing a £1.45 billion writedown on its electric vehicle division. The loss is mainly linked to the cancellation of its future seven-seater electric SUV and the postponement of other strategic projects.
The decision reflects a course adjustment in the face of a market that grew at a slower pace than expected. Marin Gjaja, director of operations for the brand’s electric division, said that the company is not “going backwards”, but rather adjusting the pace and focus of the products. The new guideline prioritizes the development of hybrid models — which offer safer profit margins in the short term — and a new platform for compact and affordable electric vehicles.
SEE ALSO:
The cancellation of the large SUV, which would compete in a high-cost segment, signals the automaker’s concern about Chinese competition, which has dominated battery technology and pushed global prices down. To address this scenario, Ford has mobilized a dedicated team in California, focused exclusively on creating low-cost electric vehicles with high efficiency, scheduled for 2027.
In addition to the immediate financial impact, the change in strategy postponed the launch of the brand’s new generation of electric pickup trucks. The objective is to avoid saturation of a market where consumers still show resistance to high prices and charging infrastructure, opting for the transition via hybrid models.
According to the automaker, the current “financial pain” is necessary to ensure the long-term sustainability of the business, avoiding the production of vehicles that would not bring financial return within the new price reality of the global automotive industry.
