Ford is canceling its electric three-row SUV and delaying the launch of a new electric pickup truck until 2027. The Expedition-like SUV had already been delayed to 2027; with its cancellation, the company will now pivot to making new gas and hybrid-powered three-row SUVs.

Ford now says it won’t release any new electric vehicles until it can ensure profitability on the models within the first year of launch (beyond vehicles we’ve already heard about, like the European-only Capri and Explorer). Ford will also prioritize a new commercial EV van that will begin production in Ohio in 2026.

Ford has struggled to bring its spending on EV production in line with the revenue brought in by its vehicle lineup, which includes the Mustang Mach-E, F-150 Lightning, and E-Transit van. The company reported a $1.3 billion loss for its Model e EV division in the first quarter of 2024 and a $1.1 billion loss in the second quarter.

Meanwhile, EV sales growth across the industry has slowed down, and automakers of all stripes are reining in expectations about the shift to electric vehicles.

The automaker is reducing capital spending on EVs to 30 percent, down from the previous 40 percent. The canceled electric SUV could potentially cost Ford $1.5 billion in expenses and a special non-cash charge of $400 million.

Ford was also reportedly working on a more affordable EV in one of the automaker’s skunkworks labs, which is still on track. The first vehicle will be a midsize electric truck, not a compact one that had previously been rumored. Ford is also looking to add hybrid powertrain options to its upcoming next-generation Super Duty pickup trucks, similar to the company’s hybrid F-150.

Meanwhile, the expected successor to the F-150 Lightning, known as the T3 truck, will now go into production in late 2027 instead of 2025. According to Ford, “the truck will offer features and experiences never seen on any Ford truck, including upgraded bi-directional charging capability and advanced aerodynamics.”