Ford is once again making a shift in its electrification strategy by switching three previously planned all-electric SUVs to hybrids and reducing its annual capital dedicated to EVs from 40% to 30%, according to a company press release issued Wednesday.

John Lawler, Ford CFO, told reporters on a Wednesday call that the company is assessing pricing pressure on EVs and on the cost of a battery large enough to power three-row SUVs, according to an Insider article. It says the company found it wouldn’t be able to achieve profitability with the vehicles in the first year of launch. 

“These vehicles need to be profitable,” Lawler says in the article. “If they’re not profitable based on where the customer is — where the market is — we will pivot and adjust.”

The company has made changes to multiple EV plans this year. It announced in June it would scrap its dealership EV certification program. It also shifted two-thirds of its F-150 Lightning factory workforce to other projects in March. 

Lawler said during the Bank of America Automotive Summit March 26 that the company is turning its focus to smaller EVs. 

“The real competition, where we see it, is the low-cost EVs from China, as well as Tesla,” Lawler said. “Of course, we are going to have large EVs as well but they are going to be very limited.”

However, Wednesday’s press release says the company is now focused on an all-electric “medium-sized” pickup truck and an all-electric “next-generation truck” for 2027. 

The mid-sized pickup will cater to customers who want more for their money, the release says. It will have more range, utility, and useability. 

Ford’s next-generation truck will build on the F-150 Lightning, the release said. 

“Ford is retiming the launch of its groundbreaking electric truck code-named ‘Project T3’ to the second half of 2027,” the release says. “Taking all the learnings from F-150 Lightning customers, the truck will offer features and experiences never seen on any Ford truck, including upgraded bi-directional charging capability and advanced aerodynamics.” 

An all-electric commercial van is also in the works and slotted for 2026, the release says. It will join Ford’s portfolio of electric vans led by the E-Transit. 

The company plans to spend extra time developing lower-cost battery technology. It says it has realigned its U.S. battery sourcing plan to reduce costs, maximize capacity utilization, and support current and future electric vehicle production. 

Ford will take a financial hit for the changes. It projects switching its SUVs from all-electric to hybrid will result in additional expenses and cash expenditures of up to $1.5 billion.

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