Ford to Take $19.5B Charge as It Scales Back Electric Vehicle Plans

Ford Motor Co. announced it will take a $19.5 billion accounting loss over the next several years as it scales back its electric vehicle (EV) strategy. 

The Details: The automaker said it will end production of the all-electric F-150 Lightning in 2025 and cancel several planned EV models, including a next-generation electric pickup and electric commercial vans. Instead, it plans to shift toward hybrids, extended-range electric vehicles and gasoline-powered models, aiming for those to make up about half of its global sales by 2030. Most of the $19.5 billion charge will be recorded in 2025 and 2026, with $5.5 billion in cash effects extending into 2027. Ford said about $8.5 billion is tied to canceled EV programs, $6 billion to ending a battery joint venture with South Korea's SK On and roughly $5 billion to program-related expenses.

For Context: Ford's EV division has lost more than $12 billion since 2023 as sales slowed and costs rose. The shift comes as other automakers also rethink EV plans following softer consumer demand and changes in US policy, including the expiration of a $7,500 federal EV tax credit and looser emissions enforcement. Ford executives said the strategy reflects a "customer-driven shift" toward higher-return products, as the broader auto industry adjusts to a slower transition to fully electric vehicles.

How the Media Covered It: Outlets across the political spectrum noted the impact of President Trump's policies on the EV industry. New York Post (Lean Right bias) and Newsmax (Right) both emphasized the amount of money Ford invested in EVs and quoted a Ford executive saying, "Rather than spending billions more on large EVs that now have no path to profitability, we are allocating that money into higher-returning areas." Newsmax said the move "underscores growing skepticism" from the auto industry about EV profitability. Many outlets on the Left and in the Center, including, heavily cited Ford's reasoning behind the move and positives of the new strategy. Many included Ford CEO's quote that it was a "customer-driven shift" and "positive for jobs". Bloomberg (Lean Left) noted the move is a "testament" to the difficulty Ford's faced making EVs profitable and argued Trump's policy changes are likely to worsen those challenges. Wall Street Journal (Center) mentioned previous EV policy from the Biden administration and pushback from Republicans. It said the move is "a fresh sign" that America's roadways will continue to have a large number of gas-powered cars. The Verge (Lean Left) and Forbes (Center) both mentioned long-term difficulties selling EVs.

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