Ford Motor Company has announced that the production of its electric next-generation pickup truck at the new West Tennessee plant will be delayed until 2027. The Tennessee Electric Vehicle Center at the plant will employ 3,000 workers, with the remaining jobs coming from the campus’ battery plant, a joint venture between Ford and SK. The delay is part of a shift in Ford’s electric vehicle strategy, which will now prioritize hybrid vehicles and reduce capital expenditures for pure electric vehicles.
The decision to postpone production at the Tennessee plant is due to a decline in electric vehicle demand and increased competition in the market. Ford will focus its electric vehicle efforts on areas where it has competitive advantages, including the production of a new all-electric commercial van in Ohio in 2026, followed by a mid-sized pickup truck and the next-generation pickup in Tennessee in 2027.
Lower-cost battery production is a key component of Ford’s revised strategy to make their new electric vehicles profitable within the first 12 months of launch. The company plans to begin manufacturing batteries for the E-Transit and F-150 Lightning in Kentucky in 2025 and produce Lithium iron phosphate batteries in Michigan in 2026. Ford will also move some battery production from Poland to Michigan in 2025.
The shift towards hybrid technology for the company’s planned three-row SUVs will result in certain one-time charges and expenses, but Ford aims to provide an update on its electrification, technology, profitability, and capital requirements in the first half of 2025.
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