Ford Suspends Production at Tennessee EV Plant, Scraps Plans for All-Electric SUV

In a significant shift, Ford Motor Company has announced a delay in the production of its electric vehicle (EV) plant in Stanton, Tennessee, alongside the scrapping of plans for a fully electric SUV. This move reflects the growing skepticism among consumers about battery-powered cars and signals a broader industry trend away from the all-electric push that has been heavily promoted by the Biden administration and environmental activists.

The automaker has been facing mounting challenges in its EV division, and the recent decisions highlight a critical reassessment of its strategy. Ford executives revealed last week that the company would slow its investment in electric vehicles, reducing the capital expenditure allocated to its EV division from 40% to 30%. This decision comes as the company grapples with substantial financial losses tied to its electric car lineup, prompting a reconsideration of its ambitious plans.

Initially, Ford had planned to launch two electric vehicles in 2027 at its Tennessee Electric Vehicle Center, including a medium-sized truck and the latest model of its iconic F-Series truck. However, the full-sized pickup, known internally as “Project T3,” has now been postponed by 18 months. Additionally, Ford has completely canceled its plans to produce a three-row electric SUV, opting instead to develop a hybrid model. This pivot aligns with a broader industry trend where major automakers are retreating from their aggressive all-electric goals in favor of more balanced approaches that include hybrid and gas-powered vehicles.

Ford’s challenges are not unique. The entire auto industry is reevaluating the rush toward electric vehicles as consumer interest appears to wane. The American Tribune has extensively covered Ford’s EV struggles, noting that the company is leveraging its “manufacturing flexibility” to adjust production in response to consumer demand. Earlier this year, Ford even converted an EV factory in Canada to focus on producing gas-powered pickups, underscoring the shifting priorities.

Ford President and CEO Jim Farley emphasized the importance of offering customers a choice while balancing growth and profitability. “Customers love the F-150 Lightning, America’s best-selling EV pickup,” Farley said, “We see a bright future for electric vehicles for specific consumers, especially with our upcoming digitally advanced EVs and access to Tesla’s charging network beginning this quarter.”

However, Ford CFO John Lawler made it clear that the company is not abandoning its EV aspirations but is reevaluating the pace of its investments. “We’re not moving away from our second generation [EV] products,” Lawler stated. “We are, though, looking at the pace of capacity that we’re putting in place. We are going to push out some of that investment.”

Lawler also stressed that Ford’s future plans would be dictated by consumer demand. “The customer is going to decide what the volumes are,” he said, highlighting Ford’s ability to balance the production of gas, hybrid, and electric vehicles in response to the speed of EV adoption.

The financial implications of Ford’s EV venture are stark. The company is projected to lose approximately $5 billion on its EV business this year, which equates to a staggering $44,000 loss per electric vehicle produced. This financial strain has contributed to a 37% decline in EV sales last quarter, causing fluctuations in Ford’s share price.

Last year, car dealers from across the country penned an open letter to President Biden, urging a reconsideration of the aggressive EV agenda. The letter called for a more realistic approach, emphasizing the need for time to advance battery technology, lower costs, develop domestic mineral sources, and build a reliable charging infrastructure. The dealers also stressed the importance of allowing American consumers the time to become comfortable with the technology and make informed choices.

As Ford and other automakers reassess their strategies, it is clear that the rush to an all-electric future is facing significant headwinds. The American consumer, it seems, is not yet ready to fully embrace the EV revolution, and Ford’s latest moves are a testament to that reality.