09:00 AM EDT, 08/21/2024 (MT Newswires) -- (Updates with additional details from the third paragraph.)

Ford Motor Co. ( F ) is canceling its plans to produce an all-electric, three-row SUV, a move that will result in a special non-cash charge of about $400 million and could cost an additional $1.50 billion in expenses and cash expenditures, the company said Wednesday.

Ford is opting instead to "leverage hybrid technologies" for its next three-row SUVs, the company said, adding that it is also "retiming" the launch of its electric truck to H2 2027.

The company said the shift may also result in additional expenses of up to $1.5 billion and the company will be reflected as a special item in the relevant quarter.

The company said it is adjusting its EV strategy to focus on pricing in the face of rising competition from Chinese rivals. "Today's electric vehicle consumers are more cost-conscious than early adopters," the company said.

It added that it will begin the rollout of an EV commercial van at its Ohio plant in 2026 followed by an "affordable" mid-sized electric pickup, and another electric truck assembled in Tennessee in 2027.

Other EV plans include working with LG Energy Solutions to move Mustang Mach-E battery production from Poland to Michigan next year to qualify for Inflation Reduction Act benefits.

Price: 10.85, Change: +0.17, Percent Change: +1.59