The move comes as Ford estimates losses of up to $5.5 billion from its electric vehicle business this year.

The investment will primarily be used to expand production for F-Series Super Duty trucks, which are larger than the popular F-150 model. Ford will invest $2.3 billion to increase Super Duty truck production at a facility in Ontario, Canada, while the remaining funds will be used to boost production at other supporting facilities in the United States and Canada.

This expansion marks a significant shift for Ford, as its Super Duty truck production was previously limited to facilities in Ohio and Kentucky. The expanded Ontario plant is expected to manufacture approximately 100,000 cars per year, creating around 400 new jobs. Additionally, a nearby plant that manufactures engines for Super Duty trucks will witness the addition of around 150 jobs.

Initially, Ford had planned to produce three-row electric SUVs at the Ontario plant starting in 2025. However, due to market conditions, the company has delayed this move until 2027. Ford remains committed to developing a profitable electric vehicle business but will now move the production of three-row electric SUVs to another plant, which remains undisclosed.

Ford's projection of losing between $5 billion and $5.5 billion from its electric vehicle business this year was revealed in February. The automaker reported a loss of $4.7 billion for 2023, citing an intensely competitive pricing environment. Earlier this year, Ford's CEO, Jim Farley, informed investors that the company was reevaluating its electric vehicle business.

Goldman Sachs has suggested that the slowdown in the electric vehicle market is due to factors such as uncertainty surrounding the upcoming presidential election, lower prices for used vehicles, a shortage of charging stations, and increased sales of hybrid vehicles. Concerns over the driving range of electric vehicles also contribute to this trend.

Despite the current challenges, Ford had previously announced plans to ramp up electric vehicle production, targeting an estimated capacity of 2 million vehicles globally by the end of 2026. However, in light of the current circumstances, Ford reported a loss of $1.3 billion from its electric vehicle business in the first quarter of this year, along with a 20% decline in sales compared to the same period last year.

In February, CEO Jim Farley stated that Ford would delay the launch of the next generation of electric vehicles until they could be profitable. Similar to Ford, other automakers such as Tesla, BYD, and General Motors have also adjusted their strategies and prices in response to the challenges facing the electric vehicle market.

As the automotive industry continues to navigate the evolving landscape, Ford's investment in expanding F-Series truck production showcases the company's adaptation to market conditions. While prioritizing its profitable truck segment, Ford remains committed to developing a thriving electric vehicle business, albeit with certain adjustments to its timeline and production plans.