12:59 PM EDT, 04/04/2024 (MT Newswires) -- Ford Motor ( F ) pushed back the timeline of planned electric sports utility vehicle deliveries while saying that it planned to ramp hybrid output, moves the automaker said should help it more profitably scale its EV business and meet customer demand.

An overhaul of Ford's Ontario, Canada, plant into an EV manufacturing complex from a gas assembly facility is set to begin in the second quarter, as planned. However, the market launch of the company's new three-row EVs that will be produced there has now been pushed back to 2027 from 2025.

"The additional time will allow for the consumer market for three-row EVs to further develop and enable Ford to take advantage of emerging battery technology, with the goal to provide customers increased durability and better value," Ford said in a statement. Its shares rose 1.7% in Thursday midday trade.

The company announced that the development of the BlueOval City campus in Tennessee, which will assemble Ford's next-generation electric pickup, is progressing on track. Deliveries will begin in 2025 as the automaker enacts a more gradual output ramp to focus on quality. Last year, it said production at the plant would begin in 2025.

In the meantime, Ford will focus on serving "the right mix" of gas, hybrid and electric vehicles based on current demand, while expanding its hybrid electric vehicle offerings. By the end of the decade, it aims to offer hybrid powertrains across its entire Ford Blue lineup in North America.

"We are committed to scaling a profitable EV business, using capital wisely and bringing to market the right gas, hybrid and fully electric vehicles at the right time," Ford Chief Executive Jim Farley said.

The move comes as soft EV demand has roiled the industry. Chief Financial Officer John Lawler told analysts at a conference last month that the automaker was working on rightsizing capacity with demand, which was "much lower than the industry expected."

Still, Ford's electric vehicle sales increased by 86% in the first quarter, while hybrid sales rose 42% year over year. Ford's teams are developing a profitable EV platform capable of underpinning multiple vehicles at high volumes, the company said.

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