Ford Motor Co. is taking roughly $19.5 billion in charges as it backs away from an aggressive push into fully electric vehicles, after losing billions of dollars on its EV business amid weakening consumer demand, according to reporting by The Wall Street Journal.
The automaker has lost about $13 billion on its electric-vehicle operations since 2023 and said Monday it will ramp up production of gasoline-powered vehicles while shifting its electrification strategy toward hybrids and extended-range EVs that include onboard gasoline engines. The move reflects a broader retrenchment by U.S. automakers as regulatory pressures ease and Americans prove less enthusiastic about buying EVs than expected.
The $19.5 billion in charges includes approximately $6 billion tied to the breakup of a joint venture with South Korea’s SK Group to build electric-vehicle batteries in the United States. Ford said most of the charges will be recorded in the fourth quarter, with additional costs recognized later.
“Instead of plowing billions into the future knowing these large EVs will never make money, we are pivoting,” Ford CEO Jim Farley told The Wall Street Journal. “We now know enough about the U.S. market where we have a lot more certainty in this second inning” of reduced-emissions powertrains.
As part of the shift, Ford will stop producing the all-electric Lightning version of its F-150 pickup truck and instead move toward an extended-range version that pairs electric drive with a gasoline engine. The company said it remains committed to launching a roughly $30,000 electric pickup by 2027, which it describes as the foundation of a new lineup of lower-cost EVs.
“Now this is the core of our EV strategy in America,” Farley said. “We’ve got to land the plane,” according to the Journal.
By 2030, Ford expects about half of its global vehicle volume to consist of hybrids, extended-range vehicles, and fully electric vehicles, up from about 17% this year. The company will also convert its Kentucky EV battery plant into a battery-storage business serving utilities, renewable-energy developers, and data centers that support artificial-intelligence operations.
Ford said it plans to hire thousands of new employees nationwide, though roughly 1,600 workers at the Kentucky battery plant will be laid off as the facility is repurposed.
Despite the retreat from full electrification, Ford raised its earnings outlook, projecting $7 billion in adjusted pretax earnings for the year. The company reported net income of $5.9 billion last year on $185 billion in revenue, underscoring that while EVs have been a major financial drag, Ford’s broader business remains profitable.
In November, Ford said it would discontinue its all-electric F-150 Lightning pickup, as sales falter nationwide and traditional truck buyers, Alaska included, stick with gas and hybrid versions of America’s best-selling vehicle.
One thought on “Ford tires of racking up losses on electric vehicles, pivoting back to gasoline-powered”
It is possible that some in corporate America will think twice going forward before making investment decisions in response to Left-wing environmental zealots. (or their fellow travelers at Goldman Sachs.) There is a price to be paid for following and empowering people and institutions infected with the green/woke mind virus. I suspect that those at Ford that decided to make electric trucks never drove one off the pavement or turned a greasy wrench.