Ford takes $19.5bn hit on EV plans

Ford Motor said it will record a $19.5 billion writedown and cancel several planned electric-vehicle (EV) models, marking a major retrenchment from battery-only strategies as demand weakens and policy incentives shift. The company will stop producing the F-150 Lightning in its current all-electric form and instead develop an extended-range electric variant (an EREV) that uses a gasoline generator to recharge its battery. Ford also scrapped a next-generation EV pickup codenamed T3 and planned electric commercial vans.

About $8.5 billion of the writedown is tied to cancelled EV models, roughly $6 billion to dissolving a battery joint venture with South Korea’s SK On, and about $5 billion to program-related expenses, the automaker said. The charge will be taken primarily in the fourth quarter and will extend into next year and 2027. Despite the writedown, Ford raised its 2025 guidance for adjusted earnings before interest and taxes to about $7 billion, up from a prior range of $6 billion–$6.5 billion.

Ford said it will pivot toward gas and hybrid vehicles while still planning a mix of hybrids, extended-range EVs and pure EVs to represent about 50% of global sales by 2030, up from roughly 17% today. The company expects to hire thousands of workers as part of the strategic shift, though some near-term layoffs are anticipated at a jointly owned Kentucky battery plant. Production plans for the Tennessee complex that was to build the T3 will now prioritize new gasoline-powered trucks starting in 2029, while a lower-cost EV developed by a California “skunkworks” team—priced near $30,000—is slated for 2027 and will be built at Ford’s Louisville plant.

Ford’s reversal reflects broader industry adjustments after heavy early‑decade investment in electrification. Demand for battery EVs has softened amid policy changes under the Trump administration that reduced federal incentives and eased emissions rules—factors that industry executives and analysts say have undercut EV uptake. U.S. EV sales fell sharply in recent months after the expiration of a $7,500 consumer tax credit, further pressuring automakers’ EV plans.

The F-150 Lightning, launched in 2022 amid strong initial interest, sold 25,583 units through November this year, down 10% from a year earlier, despite early order surges. With the cancellation of its second-generation EV program, Ford is refocusing on affordability and a blended vehicle portfolio that balances hybrids, extended-range models and selective pure EVs as it reshapes capital allocation and product strategy in response to changing market and policy realities.