Ford Motor announced on Monday that it will take a $19.5 billion writedown and cancel several electric-vehicle models, signaling a major retreat from battery-powered vehicles amid weakening demand and changing US policies.
The automaker will discontinue the fully electric F-150 Lightning, replacing it with an extended-range hybrid model that uses a gas engine to recharge the battery.
Ford also scrapped its next-generation T3 electric truck and planned electric commercial vans.
"When the market really changed over the last couple of months, that was really the impetus for us to make the call," Ford CEO Jim Farley told Reuters.
The $19.5 billion writedown will be spread across the fourth quarter of 2025 and continue into 2027.
About $8.5 billion stems from canceled EV projects, $6 billion from the dissolution of a battery joint venture with South Korea's SK On, and $5 billion from program-related expenses.
Despite the charges, Ford raised its 2025 guidance for adjusted earnings before interest and taxes to roughly $7 billion, up from an earlier range of $6 billion to $6.5 billion. Shares rose about 1% in after-hours trading.
#Evs are dogshite. Ask #Ford but don't tell #BlackOutBowen
— Mrs S 2023 😘 (@MrsS2023) December 15, 2025
Ford has announced a $US19.5bn ($29.4bn) write-down as it turns its back on pure electric vehicles, a decision that directly validates the overwhelming consumer preference for hybrids. pic.twitter.com/Fap5woE3Dd
Ford Scales Back EVs as U.S. Sales Drop 40%
Ford's shift highlights a broader industry trend as traditional automakers adjust to reduced EV demand following US policy changes under President Donald Trump.
Federal support for EVs, including a $7,500 consumer tax credit, expired on September 30, while easing of tailpipe-emissions rules encourages the sale of gas-powered vehicles.
According to Japan Times, US EV sales dropped approximately 40% in November, underscoring the market shift.
The F-150 Lightning, introduced in 2022, initially saw strong interest, with Ford producing the model to meet an influx of 200,000 orders.
However, actual sales fell short, with 25,583 units sold through November, a 10% drop from last year.
The planned T3 truck, set to be built at a new Tennessee facility, will now be replaced with gas-powered trucks starting in 2029.
Moving forward, Ford plans to focus on more affordable EV models, with its skunkworks team in California developing a midsize EV truck priced at around $30,000, expected to launch in 2027.
The Louisville plant will handle production of this new model. Ford's global mix of hybrids, extended-range EVs, and pure EVs is projected to reach 50% by 2030, up from 17% today.
"Rather than spending billions more on large EVs that now have no path to profitability, we are allocating that money into higher-returning areas," said Andrew Frick, head of Ford's gas and EV operations.
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