Ford Motor Co. is scrapping plans for a three-row electric sport utility vehicle, choosing instead to focus on making hybrids. The move comes as consumers increasingly turn away from electric vehicles and express enthusiasm for other types of fuel-efficient vehicles.
The Dearborn, Michigan-based automaker said Wednesday its new plan aims to “accelerate customer adoption” of more affordable, longer-range vehicles amid declining demand for electric vehicles. Ford said it plans to develop a new family of three-row electric SUVs that will include hybrid technologies.
According to AAA, nearly two-thirds of potential car buyers said they were unlikely to purchase an electric vehicle for their next vehicle. more expensive than their gas counterpartsand can give drivers range anxiety, or the fear that their electric vehicle will run out of power before they can reach a charging station.
With electric vehicle sales declining, the national average price of a new electric vehicle fell 9% to $55,252 from 2023, according to Kelley Blue Book.
“As America’s second-largest electric vehicle brand, we’ve learned a lot about what customers want and value, and what it takes to match the world’s best with cost-effective design, and we’ve developed a plan that gives our customers maximum choice and plays to our strengths,” Ford CEO Jim Farley said in a statement Wednesday.
Ford also announced plans to launch an electric cargo van in 2026, as well as two new pickups in 2026, in addition to other vehicles. Ford is committed to building vehicles that generate lower levels of carbon dioxide emissions.
Ford cited strong competition in the electric vehicle market from Chinese automakers, as well as strong demand for electric vehicles. consumer price sensitivityas reasons for the pivot.
“Additionally, today’s EV consumers are more cost-conscious than early adopters, viewing EVs as a convenient way to save money on fuel and maintenance, as well as save time by charging at home,” the company said in a statement. “This, combined with the arrival of many new EVs over the next 12 months and increasing compliance requirements, has amplified pricing pressure.”
The company said it would take a $400 million noncash charge to write down the value of manufacturing equipment designed to build the scrapped three-row electric SUV. It could also face additional expenses of up to $1.5 billion for its shift away from electric vehicles, it added.
