Key Takeaways

• Ford delays new electric truck and three-row SUV
• Ford will focus on hybrids, promising one for every combustion vehicle it sells in North America
• Canadian Oakville plant is worst affected by the decision, as Edge production ends this quarter; no new vehicles will be made until 2027

Ford has officially confirmed that it is delaying plans for new electric vehicles, including an all-new electric pickup and an all-new three-row SUV, pivoting to redirect resources toward launching at least one hybrid powertrain for every gasoline-powered vehicle in its North American lineup. This comes as EV demand is waning worldwide, prompting several other automakers to make similar moves.

The paradigm shift is affecting all segments. So far, automakers that have announced they will delay EVs to focus on hybrids include Mercedes-Benz, JLR, Bentley, Aston Martin, and General Motors.

Ford maintains that its next-generation EVs will be “breakthrough” vehicles and confirms that design work on these new models continues. Also ongoing is the skunkworks development of a small, flexible EV platform that will cost much less to produce.

What Does Ford’s EV Delay Mean For Its Expensive Tennessee Plant?

Announced back in 2021, Blue Oval City is a $5.6 billion, 3,600-acre facility that is still under construction. This is where the all-new electric pickup is to be produced, and this remains the plan. But instead of deliveries commencing late in 2025, the new target date is sometime in 2026 (Ford was not specific). Construction and the installation of equipment will continue despite the new truck’s delay.

This Tennessee facility is meant to eventually produce half a million EVs a year and employ some 6,000 workers, but in the meantime, Ford will be idling workers in Canada due to the delay of its all-new three-row electric SUV, now scheduled for 2027. This severely impacts the Canadian plant in Oakville, where the 2024 Edge crossover will end production this quarter, with no 2025 model planned.

Bad News For Canadian Assembly Workers

After striking a 10% wage increase deal with Canada’s auto workers union (Unifor) in September, the same workers are now in something of a pickle. Ford says most workers will be eligible for 70% of their pay while on layoff during this transition phase. According to a memo obtained by Automotive News, workers were informed on Thursday, being told that Ford “did [an] extensive study into the possibility of extending” Edge production but ultimately chose to stick with its timeline for converting the facility into an EV plant. CEO Jim Farley said Ford values this workforce and that the company is “fully committed to manufacturing in Canada,” but that this decision is necessary for long-term profitability growth.

Unifor, on the other hand, is not impressed, reports Yahoo! Finance Canada. “Unifor is extremely disappointed by the company’s decision. Our members have done nothing but build best-in-class vehicles for Ford Motor Company, and they deserve certainty in the company’s future production plans,” said Unifor President Lana Payne. Considering that it will be three years of non-production, Unifor is desperate to hold a meeting with Ford, while Local 707 Oakville Assembly Complex Marc Brennan said, “It is unacceptable, after 120 years of operation in this country, that Ford does not plan to build a single vehicle in Canada for years on end.”

We’ll bring you more details on Ford’s plans as they become clearer.