Ford has pushed back the timeline for a “next-generation” electric pickup truck to replace the F-150 Lightning – Copyright GETTY IMAGES NORTH AMERICA/AFP/File BILL PUGLIANO

Ford announced some changes to its electric vehicle lineup on Wednesday, including the abandonment of a planned SUV model. Despite a sharp drop in profits in the near future, the company was able to increase its share price.

The adjustments, which reflect a slower-than-expected transition to electric vehicles in North America, will result in cost reductions of approximately $1.9 billion in Ford’s earnings, Ford said in a securities filing.

A company press release describing the changes points to competitive pressures, including from low-cost Chinese electric vehicle manufacturers, and the greater cost focus of current consumers compared to early adopters of electric vehicles, who see the cars “as a convenient way to save money on fuel and maintenance, as well as time by charging at home.”

Ford’s electric vehicle business posted losses of about $2.5 billion in the first half of 2024 as the company anticipates costly production increases amid demand uncertainty.

Among the changes is Ford abandoning plans to produce a three-row electric commercial vehicle that was originally supposed to be built in Oakville, Ontario.

Ford had previously postponed the release date and will now no longer produce the vehicle at all, but plans to use some of the technology for a hybrid offering.

Ford also pushed back the schedule for a new “next-generation” electric pickup truck to the second half of 2027, after previously saying production would begin in 2025.

Ford also announced plans for a lower-cost mid-size electric pickup truck to hit the market in 2027.

Finally, Ford plans to begin production of a new electric commercial vehicle in 2026.

“We have developed a plan that offers our customers maximum choice and plays to our strengths,” said CEO Jim Farley, adding that the company has “learned a lot” from its electric vehicle business so far.

Ford shares rose 2.1 percent in morning trading.