Ford to take $19.5bn hit as US carmaker overhauls EV strategy
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Ford says that instead of sinking billions of dollars into large EVs that are not expected to be profitable, it will put that money into higher-returning areas including more trucks and vans © 2024 Getty ImagesFord to take $19.5bn hit as US carmaker overhauls EV strategy on x (opens in a new window)Ford to take $19.5bn hit as US carmaker overhauls EV strategy on facebook (opens in a new window)Ford to take $19.5bn hit as US carmaker overhauls EV strategy on linkedin (opens in a new window)Ford to take $19.5bn hit as US carmaker overhauls EV strategy on whatsapp (opens in a new window) Save Ford to take $19.5bn hit as US carmaker overhauls EV strategy on x (opens in a new window)Ford to take $19.5bn hit as US carmaker overhauls EV strategy on facebook (opens in a new window)Ford to take $19.5bn hit as US carmaker overhauls EV strategy on linkedin (opens in a new window)Ford to take $19.5bn hit as US carmaker overhauls EV strategy on whatsapp (opens in a new window) Save Peter Wells in New York and Kana Inagaki in LondonPublishedDecember 15 2025Jump to comments sectionPrint this pageUnlock the Editor’s Digest for freeRoula Khalaf, Editor of the FT, selects her favourite stories in this weekly newsletter.Ford has said it expects to take a $19.5bn hit over the next two years as it scrapped plans to build large-sized electric vehicles to focus more on profitable hybrids and combustion engine models.The overhaul in the US carmaker’s strategy follows the recent cancellation of tax credits for EV purchases as President Donald Trump seeks to further roll back regulations to reduce emissions on cars.Ford said that instead of sinking billions of dollars on large EVs that are not expected to be profitable, it will instead pour that money into higher-returning areas including more trucks and vans, affordable EVs and an energy storage business that is expected to initially target enterprise customers such as utilities.Chief executive Jim Farley said the decision represented a “customer-driven shift” that would create a more resilient and profitable company.“The operating reality has changed, and we are redeploying capital into higher-return growth opportunities: Ford Pro, our market-leading trucks and vans, hybrids and high-margin opportunities like our new battery energy storage business,” Farley said in a statement on Monday.The company added that the business case for producing certain models of large EVs “has eroded due to lower-than-expected demand, high costs and regulatory changes”.In October, General Motors said it would incur a $1.6bn charge to scale back its EV production. Of Ford’s $19.5bn pre-tax charge, $12.5bn will be booked in the fourth quarter to streamline its EV assets, including a $3bn writedown to end its battery joint venture with South Korea’s SK On.“We are looking at the market as it is today, not just as everyone predicted it to be five years ago,” Andrew Frick, the head of Ford’s petrol engine and electric businesses, said on a media call on Monday.Frick said the American consumer was “speaking clearly” and while they want the benefits of EVs, “they demand affordability, range confidence” and vehicles that match their work and usage needs.Despite the writedown, Ford also raised its financial guidance for the full year, predicting adjusted earnings before interest and tax of $7bn, up from its forecast in October of $6bn to $6.5bn.Reuse this content (opens in new window) CommentsJump to comments sectionPromoted Content Follow the topics in this article US companies Add to myFT Corporate earnings and results Add to myFT Industrial goods Add to myFT Electric vehicles Add to myFT Automobiles Add to myFT CommentsFord has said it expects to take a $19.5bn hit over the next two years as it scrapped plans to build large-sized electric vehicles to focus more on profitable hybrids and combustion engine models.The overhaul in the US carmaker’s strategy follows the recent cancellation of tax credits for EV purchases as President Donald Trump seeks to further roll back regulations to reduce emissions on cars.Ford said that instead of sinking billions of dollars on large EVs that are not expected to be profitable, it will instead pour that money into higher-returning areas including more trucks and vans, affordable EVs and an energy storage business that is expected to initially target enterprise customers such as utilities.Chief executive Jim Farley said the decision represented a “customer-driven shift” that would create a more resilient and profitable company.“The operating reality has changed, and we are redeploying capital into higher-return growth opportunities: Ford Pro, our market-leading trucks and vans, hybrids and high-margin opportunities like our new battery energy storage business,” Farley said in a statement on Monday.The company added that the business case for producing certain models of large EVs “has eroded due to lower-than-expected demand, high costs and regulatory changes”.In October, General Motors said it would incur a $1.6bn charge to scale back its EV production. Of Ford’s $19.5bn pre-tax charge, $12.5bn will be booked in the fourth quarter to streamline its EV assets, including a $3bn writedown to end its battery joint venture with South Korea’s SK On.“We are looking at the market as it is today, not just as everyone predicted it to be five years ago,” Andrew Frick, the head of Ford’s petrol engine and electric businesses, said on a media call on Monday.Frick said the American consumer was “speaking clearly” and while they want the benefits of EVs, “they demand affordability, range confidence” and vehicles that match their work and usage needs.Despite the writedown, Ford also raised its financial guidance for the full year, predicting adjusted earnings before interest and tax of $7bn, up from its forecast in October of $6bn to $6.5bn.