DETROIT (Reuters) – Ford Motor Co said on Wednesday it was revising its strategy for electrifying its vehicles, betting instead on hybrid models and their competitive advantages as growth in demand for electric vehicles has been slower than expected.

The automaker plans to abandon its three-row electric SUV to develop hybrid versions, while adding a new, more affordable pickup and van to its future all-electric lineup.

To offset this change, Ford will record a non-cash charge of approximately $400 million (359.58 million euros) for the impairment of certain assets.

The additional spending, including cash, could amount to up to $1.5 billion, which the company will pass on to the quarter in which it is incurred as a special item.

Slowing demand for EVs has prompted automakers including Ford, General Motors and others to delay or cancel plans to avoid spending heavily on vehicles that consumers aren’t buying as quickly as expected.

These changes, Ford explains, are based on the “skunkworks” project of its California-based team, whose first model, an affordable mid-size electric pickup, will be marketed in 2027.

“The work of this highly talented team has become a critical part of our electric vehicle strategy. These electric vehicles will be lower cost and offer no compromises,” Jim Farley, the company’s chairman and CEO, said in a statement.

The automaker will launch an electric pickup truck at its Ohio assembly plant starting in 2026, hoping to capitalize on its success in combustion-engine commercial vehicles.

Separately, the long-awaited successor to the F-150 Lightning electric pickup has been delayed again, to the second half of 2027 instead of the originally planned 2025 launch, which the company says will allow it to take advantage of less expensive battery technology.

On Wall Street, Ford shares rose 2.06% to $10.90 at 2:38 p.m. GMT.

(Reporting by Nora Eckert, Elena Smirnova, editing by Kate Entringer)

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