Ford Motor Co. says it will take a US$19.5 billion write-down and scrap several electric-vehicle programs, marking one of the most significant retreats yet by a major automaker from large-scale EV production amid weakening demand and major policy shifts under U.S. President Donald Trump.The Dearborn, Michigan-based automaker said Monday it will cancel multiple planned EV models, including a next-generation electric pickup known internally as the T3, planned electric commercial vans, and will phase out the fully electric F-150 Lightning in favour of a new extended-range electric model that uses a gasoline engine to recharge the battery.Ford said the write-down will be spread largely across the fourth quarter and into 2027. About US$8.5 billion is tied to cancelling planned EV models, roughly US$6 billion to dissolving a battery joint venture with South Korea’s SK On, and about US$5 billion to what the company described as program-related expenses..The company also raised its 2025 guidance for adjusted earnings before interest and taxes to about US$7 billion, up from a prior range of US$6 billion to US$6.5 billion. Ford shares rose about one per cent in after-hours trading.Ford CEO Jim Farley said the decision reflects a sharp change in market conditions.“When the market really changed over the last couple of months, that was really the impetus for us to make the call,” Farley told Reuters.The automaker said it will pivot more heavily toward gasoline-powered and hybrid vehicles, while continuing limited EV development..Ford expects hybrids, extended-range EVs, and fully electric vehicles combined to make up about 50% of its global sales mix by 2030, up from 17% today.While Ford said it eventually plans to hire thousands of workers, it also confirmed near-term layoffs at a jointly owned battery plant in Kentucky.The shift comes as U.S. EV demand has weakened significantly. U.S. sales of electric vehicles fell about 40% in November after a US$7,500 federal consumer tax credit expired at the end of September.The Trump administration has also rolled back tailpipe emissions rules and frozen fines for fuel-economy violations, reducing regulatory pressure on automakers to sell battery-powered vehicles..Ford’s F-150 Lightning, launched in 2022 with high expectations, has struggled to meet early demand projections.The company sold 25,583 units through November, down about 10% from the same period last year, despite ramping up production capacity to meet an initial surge of orders.The now-cancelled T3 pickup had been planned as the cornerstone of Ford’s second-generation EV lineup and was set to be built at a new manufacturing complex in Tennessee.Ford said that facility will instead begin producing gas-powered trucks starting in 2029..Ford said it has effectively ended its second-generation EV program and will instead focus on smaller, more affordable electric models.A midsize electric pickup developed by a California-based “skunkworks” team is expected to debut in 2027 with a target price of about US$30,000 and will be built in Louisville, Kentucky.Earlier this year, Ford said it expected to lose about US$5 billion on its EV business in 2025, roughly in line with losses reported in 2024. The company now says it expects its EV division to reach profitability by 2029.Ford’s pullback mirrors similar moves by other legacy automakers. General Motors took a US$1.6 billion charge in October related to changes in its EV factory plans, while Stellantis has cancelled an electric Ram pickup and shifted more aggressively toward hybrids..The retrenchment contrasts sharply with the federal government of Canada’s continued commitment to electric vehicles. Ottawa has pledged billions of dollars in subsidies for EV manufacturing, battery plants, and consumer rebates, and has mandated that all new passenger vehicles sold in Canada be zero-emission by 2035.Ford’s announcement underscores the growing gap between government EV targets and the financial performance of large-scale EV programs. Despite years of heavy investment and public subsidies, automakers continue to post multibillion-dollar losses on electric vehicles as consumer demand softens and policy support changes.As Ford reallocates capital back to gas and hybrid vehicles, the company said it will repurpose battery plants in Kentucky and Michigan to produce energy storage system batteries, with initial capacity expected to come online within 18 months. A Michigan facility will also supply batteries for Ford’s upcoming midsize electric pickup.The company said the strategic reset is aimed at focusing capital on programs with clearer paths to profitability.
