DETROIT — Faced with competition from cheaper automakers, Ford Motor Co. is shifting its electric-vehicle strategy, focusing on making two new electric pickups and a new cargo van. The company says all of the vehicles will cost less, have longer ranges and be profitable before taxes within a year of hitting showrooms.
Ford, which is losing millions on its current electric vehicles, has given few details about the new products. But the automaker said production of its next-generation full-size electric pickup in Tennessee would be delayed by 18 months, until 2027.
The company also says it will not build a fully electric three-row SUV due to the high cost of batteries, but will instead focus on making those vehicles as gasoline-electric hybrids.
The other new pickup will be a midsize, based on new components developed by a small team in California. It will also go on sale in 2027. Production of the unspecified pickup will begin at an assembly plant west of Cleveland in 2026.
The changes will require Ford to write down $400 million of its current assets for large electric SUVs, and it also expects additional spending of up to $1.5 billion.
“We are committed to creating long-term value by building a competitive and profitable business,” Chief Financial Officer John Lawler said in a statement.
The company also announced that it would reduce its investment spending on electric vehicles. It will now devote 30% of its annual investment budget to their development, instead of the current 40%.
Ford, which has long talked about making profitable electric vehicles, lost $2.46 billion in the segment in the first half of the year, dragging down profits at its gasoline and commercial units.
The company said in a statement that the global electric vehicle market is evolving rapidly and needs to evolve to compete with Chinese automakers that have lower production and engineering costs. At the same time, current buyers are more cost-conscious than early adopters, and automakers are introducing more electric vehicles.
“These dynamics underscore the need for a globally competitive cost structure while being selective across customer and product segments to ensure profitable growth and capital efficiency,” the company said.
Ford also said it will build more commercial and consumer vehicles based on new, more affordable electric vehicles. More details will be revealed at an event in the first half of next year.
Sales of electric vehicles in the United States, Ford’s most profitable market, continue to grow but have slowed as more pragmatic consumers worry about range and the ability to charge their vehicles on the go. Market leader Tesla Inc. has cut prices, forcing others to follow suit.
U.S. electric vehicle sales rose about 7% in the first half of the year to 599,134 units, Motorintelligence.com reported. Electric vehicles accounted for 7.6% of the U.S. new vehicle market, about the same percentage as last year as a whole. Leases, which include federal tax credits, helped boost sales.
Sales of gasoline-electric hybrid vehicles jumped 35.3% from January to June to 715,768 units, eclipsing sales of electric vehicles.
That’s part of the reason Ford has shifted its strategy to hybrids in its full-size SUVs. Hybrids, the company has said, have similar profitability to gasoline-powered vehicles, something Ford will continue to develop.
Ford shares rose 1.5% in premarket trading Wednesday.
