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Ford Shelves Three-Row EV SUV: What It Means

Card No. 06·8637 · Updated · Standard formula, shown below

Yes, Ford has shelved its upcoming three-row electric SUV, a model that was expected to launch in 2025. The company announced the decision in August 2024, citing the need to focus on smaller, more affordable EVs and hybrid technology. This article explains why Ford made this move, what it means for the vehicle lineup, and what alternatives exist for buyers interested in a three-row EV.

Background: The Original Plan

Ford had been developing a three-row electric SUV for years, with a target launch around 2025. The vehicle was expected to be built on a dedicated EV platform and offer seating for up to seven passengers. Ford had already invested heavily in the project, including retooling its Oakville, Ontario plant to produce the SUV. The company had also announced plans to produce batteries for the model at a new facility in Kentucky.

Why Ford Shelved the Three-Row EV SUV

Ford’s decision to shelve the three-row EV SUV stems from several factors:

  • Changing consumer demand: Buyers are increasingly opting for smaller, more affordable EVs rather than large, expensive ones. The average transaction price for an EV in the U.S. has been around $55,000, and three-row EVs often cost more than $70,000, limiting their appeal.
  • Profitability concerns: Ford’s EV division, Model e, reported significant losses in 2023 and 2024. The company realized that large EVs were not generating enough profit to justify the investment.
  • Competition: Rivals like Tesla, Hyundai, and Kia already offer three-row EVs (Model X, Ioniq 7, EV9) with established reputations, making it harder for Ford to gain market share.
  • Strategic shift: Ford CEO Jim Farley stated that the company is pivoting toward smaller, more affordable EVs and expanding its hybrid lineup, which has seen strong sales growth.

What Ford Is Doing Instead

Ford is not abandoning EVs entirely. Instead, it is reallocating resources to areas with higher demand:

  • Smaller EVs: Ford is developing a new, smaller EV platform that will underpin a future model, possibly a compact SUV or crossover, expected to launch later this decade. This vehicle will likely be priced below $30,000 to compete with the likes of the Chevrolet Equinox EV and Tesla’s upcoming affordable model.
  • Hybrids: Ford has announced plans to double its hybrid production in the coming years. Models like the Maverick Hybrid and F-150 PowerBoost have been popular, and the company sees hybrids as a bridge for customers not ready to go fully electric.
  • Commercial EVs: Ford continues to invest in electric vans and trucks for commercial fleets, such as the E-Transit and F-150 Lightning, which have found a steady market.

Alternatives for Three-Row EV Buyers

If you were waiting for Ford’s three-row EV, here are some alternatives currently on the market or coming soon:

  • Kia EV9: A three-row electric SUV with up to 304 miles of range, starting around $54,900.
  • Hyundai Ioniq 7: Expected to launch in 2024 or 2025, with similar specs to the EV9.
  • Tesla Model X: A premium three-row EV with up to 348 miles of range, but with a much higher starting price around $79,990.
  • Rivian R1S: A rugged three-row SUV with up to 410 miles of range, starting around $74,900.
  • Volkswagen ID.Buzz: A retro-styled van with three rows, launching in the U.S. in 2024, though it has a shorter range.

Impact on Ford’s EV Strategy

Shelving the three-row EV SUV is a significant shift for Ford. The company had previously committed to investing $50 billion in EVs through 2026, but it is now scaling back some of those plans. Ford still aims to produce 2 million EVs annually by 2026, but that goal may be adjusted. The decision also affects the Oakville plant, which will now produce the next-generation Ford Super Duty trucks instead of EVs, and the Kentucky battery plant, which may be repurposed or delayed.

Common Questions and Misconceptions

“Ford is giving up on EVs.� Not true. Ford is still investing in EVs but focusing on segments where it can compete effectively. The company’s best-selling EV, the Mustang Mach-E, continues to sell well, and the F-150 Lightning remains popular among truck buyers.

“The three-row EV SUV is canceled forever.� Ford has not ruled out a future three-row EV, but it is not a priority right now. The company may revisit the segment if battery costs drop and demand increases.

“Hybrids are a step backward.� Hybrids offer a practical solution for many buyers, providing fuel savings without range anxiety. Ford sees hybrids as a complement to EVs, not a replacement.

Frequently Asked Questions

Will Ford ever make a three-row EV SUV? Possibly, but not in the near term. Ford is focusing on smaller EVs and hybrids first. If battery technology improves and costs come down, a three-row EV could return to the roadmap.

What happens to the Oakville plant? The plant will be retooled to produce the next-generation Ford Super Duty trucks, which are internal combustion and hybrid models. This change is expected to preserve jobs and use the facility more profitably.

Is the Mustang Mach-E affected? No, the Mustang Mach-E remains a core part of Ford’s EV lineup and will continue to be produced and updated.

What about the F-150 Lightning? The F-150 Lightning is still in production and remains Ford’s flagship electric truck. Ford has increased production capacity for it.

Should I buy a three-row EV from another brand? If you need a three-row EV now, alternatives like the Kia EV9 or Tesla Model X are available. Consider factors like range, charging network, and price when deciding.

Will Ford offer more hybrid options? Yes, Ford plans to double hybrid production, including adding hybrid versions of popular models like the Explorer and Escape.

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