ICYMI - Ford takes US$19.5bn EV charge as strategy pivots to hybrids

Ford is making a significant pivot back from its electric vehicle ambitions, announcing a charge of approximately $19.5 billion largely tied to losses from its EV operations. This shift is in response to weakening demand for EVs, as the automaker aims to focus more on hybrids and traditional gasoline models. The impairment recorded is among the largest ever by a U.S. industrial company and signifies a recognition that the transition to fully electric vehicles will take longer and be less profitable than previously anticipated. Having lost around $13 billion on its EV business since 2023, Ford plans to redeploy capital away from unprofitable electric vehicle assets and increase investments in hybrids and gasoline-powered vehicles. Highlights include a shift from the fully electric version of the F-150 Lightning to an extended-range variant due to demand softness. By 2030, Ford expects hybrids and EVs to represent about 50% of global sales volume, underscoring a gradual approach rather than a rapid transition to electric vehicles. Additionally, Ford will repurpose its Kentucky EV battery facility into a battery-storage business, indicating a new direction for the company as it addresses the economic realities of EV adoption and seeks profitability.