Ford Takes $19.5B Hit to Back Off Its EV Plans

Ford is taking a massive accounting hit as it backs away from its once-aggressive bet on fully electric vehicles. The automaker said Monday it will record a $19.5 billion charge to reflect a sharp reset of its EV strategy, acknowledging it misjudged how quickly buyers would embrace battery-only cars and trucks, and how long gasoline models would remain dominant, per the New York Times. The shift comes as the broader US industry pulls back from all-electric plans, with rivals General Motors and Stellantis also leaning more heavily on gas-powered and hybrid vehicles. A rollback of federal EV incentives and fuel economy rules under the Trump administration has further reduced pressure on automakers to go all-in on electric.

Ford's revised roadmap will reshape production in several states, while creating thousands of jobs, the automaker said. A new Tennessee facility that was slated to build an all-electric pickup will instead turn out a gas truck. Plans for an electric commercial van in Ohio have been scrapped in favor of new gasoline and hybrid models. The F-150 Lightning, the electric version of Ford's flagship pickup, will be reconfigured as a plug-in-style vehicle with a gasoline generator onboard to recharge its battery, rather than remaining fully electric. It will have an estimated range topping 700 miles, per Engadget. Ford halted Lightning production in October.

One major exception: a planned mid-size electric pickup in Kentucky, targeted for 2027 at roughly $30,000, which Ford says will anchor a new lower-cost EV platform. CEO Jim Farley argued the overhaul will make Ford "much more China-proof," saying the company can better fend off low-cost Chinese EV makers by focusing on profitable hybrids and conventional models, per the Times. Ford still expects about half its global sales by 2030 to be either hybrids or EVs (up from 17%), with hybrids playing a larger role than previously envisioned. Though some analysts say the move could backfire if consumer demand for EVs rebounds, Ford noted it has "lots of flexibility" in future plans. Though it will report a net loss in Q4, annual profit before interest and taxes will be around $7 billion.