DETROIT – Ford Motor Co. is recording a major strategic reversal on electric vehicles, announcing roughly $19.5 billion in special charges tied to a restructuring of its business priorities and a sharp pullback from large all-electric vehicle investments.
The Detroit automaker said most of the charges will hit in the fourth quarter, followed by $5.5 billion in cash charges through 2027, with the majority paid next year. While the charges will weigh on Ford’s net results, the company said they will not impact adjusted earnings. Ford also raised its 2025 adjusted earnings before interest and taxes guidance to about $7 billion, returning to a target it had previously lowered earlier this year.
At the center of the move is a decisive shift away from large, high-priced electric vehicles and toward hybrids, plug-in hybrids, and extended-range electric vehicles, commonly known as EREVs. Ford confirmed that $8.5 billion in EV asset write-downs are included in the charges, reflecting the scale of the pivot.
Ford CEO Jim Farley said the company is responding to reality rather than projections. “We evaluated the market, and we made the call,” Farley said on CNBC. “We’re following customers to where the market is today.”
One of the most significant confirmations came Monday afternoon. The current-generation Ford F-150 Lightning is effectively dead. Ford has already ended production of the 2025 model-year Lightning, and the vehicle will not survive beyond next year. The next version of the Lightning will return as an extended-range electric vehicle, combining an electric drivetrain with a gas-powered generator.
Ford executives acknowledged the Lightning never lived up to early expectations. At one point, Ford projected annual sales of up to 150,000 units. Actual sales never topped roughly 40,000 per year. While the Lightning remained the best-selling electric pickup, demand never justified the cost structure.
Price was a major factor. The Lightning was originally pitched as a $40,000 electric truck, but most models landed between $60,000 and $90,000. Parked next to nearly identical gas-powered F-150s that cost $10,000 to $15,000 less, the Lightning struggled to convince traditional truck buyers. Ford relied heavily on incentives, which further deepened losses in its EV division.
Production disruptions also played a role. A supplier fire limited F-150 output, and Ford chose to prioritize restarting gas and hybrid truck production due to stronger demand and profitability. Employees from the Rouge Electric Vehicle Center have since been shifted to Dearborn Truck Plant to support increased gas truck production.
Ford is also canceling several major EV programs. A next-generation electric commercial van meant to replace the E-Transit has been scrapped. Instead, Ford will launch a new affordable commercial van with gas and hybrid powertrains, to be built at the Ohio Assembly Plant beginning in 2029. The Tennessee Electric Vehicle Center has been renamed the Tennessee Truck Plant, where Ford plans to build new affordable gas-powered trucks that are not part of the F-Series lineup.
Farley acknowledged that policy changes played a role in the decision-making, including the early end of the $7,500 federal EV tax credit. However, he emphasized that demand and cost realities were the primary drivers. High-end EVs priced between $50,000 and $80,000 “just weren’t selling,” he said.
Ford is not abandoning electrification altogether. Instead, the company is betting on smaller, more affordable EVs built on its new Universal EV Platform. The first vehicle on that platform will be a fully connected midsize pickup truck assembled at the Louisville Assembly Plant starting in 2027. Ford has also reaffirmed plans for a compact electric truck with a target price near $30,000.
In addition, Ford is repurposing battery plants in Kentucky and Michigan to launch a stationary energy storage business, aimed at data centers and grid infrastructure. The company expects to have 20 gigawatt-hours of annual capacity for this market and plans to begin shipping units by 2027.
Looking ahead, Ford expects about 50 percent of its global sales by 2030 to come from hybrids, extended-range vehicles, and full EVs, up from roughly 17 percent in 2025. The automaker said the changes are expected to put its Model e EV division on a path to profitability by 2029, with early financial improvements beginning in 2026.
“These are big decisions,” Ford executives said, but ones they believe will stabilize the business, protect American manufacturing jobs, and align the company with what buyers are actually willing to purchase.
Ford shares rose about 2 percent in after-hours trading following the announcement. The stock closed Monday at $13.65, down less than 1 percent on the day but up nearly 40 percent for the year.
For Ford, the message is clear. The electric future is no longer an all-in bet on large, expensive EVs. It is a slower, more traditional transition built around hybrids, extended range technology, and products customers are already buying.
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- NMD Staff
News@NewMediaDetroit.com