Ford Motor Company announced Monday it will take a $19.5 billion charge as it retreats from its electric vehicle ambitions, signaling a major strategic shift back to traditional gas-powered and hybrid vehicles. The massive write-down is the largest ever for a Detroit automaker and underscores the growing fallout from declining consumer demand for EVs.
The company’s electric vehicle division has lost $13 billion since 2023, prompting Ford to abandon its previous full-throttle EV strategy. Instead, the automaker is now investing in hybrids and plug-in hybrid models that combine gas engines with electric motors. CEO Jim Farley confirmed the pivot, stating the company is pulling out of unprofitable areas to focus on what consumers actually want to buy.
“Instead of plowing billions into the future knowing these large EVs will never make money, we are pivoting,” Farley said.
As part of this shift, Ford will cease production of the all-electric version of its flagship F-150 pickup, the Lightning. The company will instead focus on a longer-range hybrid model. Ford still plans to release a $30,000 electric truck by 2027, which it says will anchor its new budget EV strategy.
This about-face marks a sharp turn from Ford’s earlier optimism. The company previously championed EVs as easier to manufacture and more cost-effective. Farley once touted that EVs required fewer parts, welds, and labor compared to gas-powered cars. But the reality of tepid demand, high development costs, and fierce price competition—particularly from overseas manufacturers—has forced Ford to rethink its approach.
Looking ahead, Ford now expects about half of its global production by 2030 to be a mix of hybrids, extended-range vehicles, and EVs, up from just 17% today. The new strategy reflects a broader industry trend favoring hybrids as a more practical and cost-effective alternative for consumers wary of EV limitations.
