In a strategic move, Ford has announced a delay in the production of its highly anticipated three-row electric SUV at its Oakville plant in Ontario. The decision comes as the automaker aims to expand its hybrid lineup and take advantage of advancements in battery technology. The new SUV, initially planned for launch in 2025, will now hit the market in 2027.

According to a recent report by data analytics firm Cloud Theory, the Mach-E movement, Ford's first foray into the electric vehicle (EV) market, was described as "dramatic and immediate." However, the company is now shifting its strategy to focus on hybrids, thereby pushing back the launch of the three-row electric SUV.

CEO Jim Farley expressed Ford's commitment to the region, emphasizing the decision as a means to build a profitably growing business in the long term. Meanwhile, despite the delay in Ontario, progress at the Tennessee EV plant remains on track. Ford is installing 4,000 tons of stamping equipment for its next all-electric pickup truck, with deliveries expected to commence in 2026. The company plans to gradually ramp up production to ensure top-notch quality.

In addition to Tennessee, Ford is expanding its Ohio Assembly plant to manufacture new electric commercial vehicles for Ford Pro, set to launch by the middle of the decade. The automaker's aim is to offer a hybrid model across its Ford Blue lineup by the end of the decade.

Farley emphasized Ford's commitment to scaling a profitable EV business, stating, "We are committed to using capital wisely and bringing to market the right gas, hybrid, and fully electric vehicles at the right time." He also highlighted the company's dedication to developing breakthrough, next-generation EVs that will be fully software enabled, boasting improved digital experiences and a multitude of potential services.

Ford is not only focusing on EVs but is also making waves in the hybrid market. The company's "skunkworks" team, led by Alan Clarke, a top engineer for Tesla's Model Y and Model 3, is developing a smaller, low-cost EV platform that will serve as the foundation for multiple future vehicles. The first models based on this platform, including a smaller electric pickup and SUV priced around $25,000, are expected to be unveiled soon.

While Ford is delaying the launch of its three-row electric SUV, overseas rivals are seizing the opportunity to gain market share. Kia's new three-row EV9 has already sold over 4,000 units in the US since its launch in March. Hyundai is also making progress with its upcoming three-row electric SUV, the IONIQ 9, set to hit the market by the end of this year. Volvo, which plans to go all-electric by 2030, is another automaker reaping rewards from its EV focus.

Meanwhile, Rivian, an EV startup, continues to scale production successfully. Its R1S was the seventh best-selling EV in the US last year. Recently, Rivian unveiled a more affordable model, the R2, priced at $45,000, which will be available in early 2026. This week, the company achieved a significant milestone as its 100,000th EV rolled off the production line.

While Ford's decision to delay the launch of its three-row electric SUV may have financial justifications, it could potentially result in market share loss as competitors push forward in the EV segment. As the company shifts its strategy towards hybrids and explores new battery technology, only time will tell how this tactical shift will impact Ford's position in the rapidly evolving automotive landscape.