Ford retreats from EVs, takes $19.5 billion charge as Trump policies take hold
Dec 15 (Reuters) – Ford Motor said on Monday it would incur a $19.5 billion loss and discontinue several electric vehicle models; This marks the most dramatic example yet of the auto industry’s retreat from battery-powered models in response to the Trump administration’s policies and weakening EV demand.
The Dearborn, Michigan-based company said it will stop producing the F-150 Lightning in electric vehicle form but will shift to producing an extended-range electric model, a version of the hybrid vehicle called EREV that uses a gas-powered generator to recharge the battery. The company is also scrapping planned electric commercial vans, as well as a next-generation electric truck codenamed T3.
Instead, Ford said it will push hard toward gas and hybrid models and eventually hire thousands of workers, though there will be some layoffs at its jointly owned Tennessee battery plant in the near future. The company expects the global hybrid, extended-range EV and pure EV mix to reach 50% by 2030, up from 17% today.
Ford will first distribute the loss taken in the fourth quarter and continue into next year and into 2027, the company said. Approximately $8.5 billion is related to the cancellation of planned EV models. About $6 billion is tied to the termination of a battery joint venture with South Korea’s SK On, and another $5 billion is tied to what Ford calls “program-related expenses.”
The automaker also raised its 2025 forecast for adjusted earnings before taxes and interest to nearly $7 billion, up from $6 billion previously to $6.5 billion.
Ford’s shift reflects the auto industry’s response to declining demand for battery-powered models after auto companies poured hundreds of billions of dollars into EV investments earlier this decade. The outlook for electricity has declined significantly this year as U.S. President Donald Trump’s policies have pulled federal support for electric vehicles and eased tailpipe emissions rules; This could encourage automakers to sell more gas-powered cars.
U.S. electric vehicle sales fell nearly 40% in November after the $7,500 consumer tax credit that had been in place for more than 15 years to stimulate demand expired on Sept. 30. The Trump administration included a freeze on penalties paid by automakers for violating fuel economy regulations in the massive tax and spending bill passed in July.
“Instead of spending billions of dollars more on big EVs that no longer have a path to profitability, we’re allocating that money to areas that generate higher returns,” said Andrew Frick, Ford’s president of gas and electric vehicle operations.
