Ford Resets EV Strategy After US$19.5 Billion Writedown

Ford announced a US$19.5 billion writedown and a sweeping reset of its electric vehicle strategy, marking one of the most significant pullbacks from electrification by a legacy automaker. The move signals a recalibration driven by softer market demand, shifting regulations and mounting profitability pressures.

The Dearborn, Michigan-based automaker said the charge reflects asset impairments, canceled vehicle programs and the dissolution of a battery joint venture, as it pivots away from fully electric large vehicles toward hybrids, gasoline-powered models and extended-range electric vehicles. As part of the shift, Ford will replace the fully electric F-150 Lightning with an extended-range electric pickup that uses a gasoline engine to recharge the battery, cancel its next-generation electric truck program known internally as T3, and abandon plans to produce electric commercial vans.

“When the market really changed in recent months, that was the main trigger for us to make this decision,” Ford CEO Jim Farley told Reuters.

Ford said the writedown will be recognized primarily in the fourth quarter, with charges extending through 2027 as part of a broader financial restructuring. Of the total, approximately US$8.5 billion relates to canceled electric vehicle programs, US$6 billion to the dissolution of a battery joint venture with South Korea’s SK On, and about US$5 billion to other program-related costs.

Despite the scale of the adjustment, Ford raised its 2025 adjusted operating profit forecast to about US$7 billion, up from a previous range of US$6 billion to US$6.5 billion. The company’s shares rose about 1% in after-hours trading and gained roughly 1.3% ahead of the next trading session.

Ford said it will accelerate investment in gasoline-powered vehicles and hybrids, a shift expected to lead to the hiring of thousands of workers over the medium term. However, the company acknowledged that short-term job cuts will occur at a Kentucky battery plant operated under a joint venture.

Under its revised outlook, Ford expects hybrids, extended-range EVs and fully electric vehicles to account for about 50% of global sales by 2030, up from roughly 17% today, reflecting what it described as a more gradual transition rather than a retreat from electrification.

The strategic reset comes amid a sharp slowdown in US electric vehicle demand. Industry data show EV sales fell about 40% in November after a US$7,500 federal consumer tax credit expired on Sept. 30. The incentive had been in place for more than 15 years to support adoption.

The regulatory backdrop has also shifted. The administration of President Donald Trump rolled back federal support for electric vehicles and eased enforcement of emissions and fuel-efficiency rules, including freezing penalties for noncompliance under measures approved in a fiscal package passed in July. Analysts said the changes reduced both consumer incentives and regulatory pressure on automakers.