Ford Cancels Its EV Ambitions To Focus On Hybrids

Ford Motor Co. said it will write down $19.5 billion and abandon several planned electric vehicle models, the most drastic move yet in the auto industry’s retreat from ambitious plans for battery-powered vehicles. The decision comes at a time of weakening demand for electric cars and changes in the regulatory framework in the US under the administration of President Donald Trump.

The company announced that it will replace the all-electric F-150 Lightning pickup with a new model with an extended range, which will use a gasoline engine to charge the battery. At the same time, Ford is cancelling the development of the next-generation T3 electric pickup, as well as plans for electric commercial vans. According to CEO Jim Farley, sudden changes in the market in the last few months were the key reason for this decision, reports Reuters.

Ford is now making a strong shift in strategy toward classic-engine vehicles and hybrids, with plans to hire more workers, although layoffs are expected in the short term at one of the joint-stock battery plants in Kentucky. The company estimates that by 2030, hybrids, extended-range vehicles, and all-electric models will account for about 50 percent of its global sales, compared to 17 percent today.

The write-down of $19.5 billion will be spread over the fourth quarter of this year and the following years through 2027. About 8.5 billion dollars refers to the cancellation of planned EV models, approximately 6 billion to the termination of cooperation with the South Korean company SK On in the production of batteries, while the rest refers to costs associated with development programs. At the same time, Ford raised its profit estimate for 2025, which had a positive effect on the share price.

Ford’s turnaround is part of a broader trend in the auto industry, after demand for electric vehicles in the US has weakened sharply. EV sales fell about 40 percent in November, after a federal consumer tax credit expired, while regulatory easing further encouraged manufacturers to return to classic engines. The F-150 Lightning, which was launched in 2022 with much public attention, did not achieve the expected sales momentum.

Ford has practically given up on the entire second generation of electric vehicles and now plans to focus on more affordable models. The first such electric pickup, which is being developed by a special team in California, should appear in 2027 at a price of about $30,000. Production will be located in Louisville, while existing battery factories in Kentucky and Michigan will also be redirected to energy storage systems.

Other major manufacturers are taking similar steps. General Motors and Stellantis have already scaled back their EV plans and increased their reliance on hybrids, following a strategy developed by Toyota over the years. Ford, which expects to record multibillion-dollar losses in the EV segment again this year, estimates that the electric vehicle business could become profitable by 2029.

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