Ford Delays 3-Row EVs, Shifts Focus to Affordable Models

Ford Motor Co. has decided to delay its planned 3-row electric vehicles, resembling the size of the Explorer and Lincoln Aviator, as it redirects its attention towards producing smaller, more affordable electric vehicles. Sources familiar with the company's plans revealed this shift in focus.

Initially slated for sale in early 2025 and intended to be manufactured at Ford's Oakville Electric Vehicle Complex in Canada, the three-row EVs will now take a backseat to Ford's new vision of introducing compact, budget-friendly EVs to the market. According to insiders, Ford is set to roll out an affordable EV on a small vehicle platform by late 2026.

The upcoming small crossover, earmarked as the inaugural model on this new platform, is anticipated to be constructed at Ford's Louisville Assembly Plant. This decision aligns with the agreement between Ford and the UAW (United Auto Workers), forged as part of the 2023 labor contract, which committed to the introduction of a new EV product in Louisville before the contract's expiration in 2028.

Reports from Bloomberg shed light on Ford's future product lineup, revealing plans for three models on the new platform: a small SUV, a pickup truck, and potentially a ride-hailing vehicle. The first of these models, expected to debut in late 2026, is projected to carry a price tag starting at approximately $25,000, aiming to make electric mobility more accessible to a broader consumer base.

When questioned about future product developments, a Ford spokesperson chose not to comment, maintaining secrecy around the automaker's upcoming endeavors.

Ford's CEO, Jim Farley, emphasized the company's strategic shift towards smaller EVs during a February announcement. Farley highlighted the economic viability of smaller vehicles, stating, "the economics of smaller vehicles makes more sense for consumers." He pointed out the reluctance of U.S. consumers to pay higher prices for EVs compared to their gasoline-powered counterparts.

Acknowledging the financial challenges facing Ford's EV unit, which reported a loss of $4.7 billion in 2023 with projected losses increasing to $5 billion to $5.5 billion in the current year, Farley stressed the necessity of offering smaller, cost-effective EVs to remain competitive in the global market, particularly against Chinese automakers.

Ford's strategic pivot towards smaller, more affordable EVs reflects a broader industry trend and underscores the imperative for traditional automakers to adapt to evolving consumer preferences and market dynamics.