Ford said today it’s taking on roughly $19.5 billion in charges related to its electric-vehicle business. It’s one of the largest corporate write-downs ever, underscoring a growing realization in the auto industry that electric-vehicle ambitions will take longer to materialize than expected.
Ford has put a lot into the EV space, and it has already lost $13 billion since 2023 with customers searching for more affordable options. The justification for producing larger EVs “has eroded due to lower-than-expected demand, high costs and regulatory changes,” said the company according to the Financial Times.
Now, it’s pivoting to hybrids and extended-range electric vehicles, and it’s looking to improve its gas-powered vehicle selection.
“Instead of plowing billions into the future knowing these large EVs will never make money, we are pivoting,” Jim Farley, Ford chief executive, said to 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.
The pivot it’s making is ”one of the industry’s biggest changes to its business,” as reported by the WSJ.
Ford said that by 2027 it will launch the first of several low-cost EV options, a $30,000 EV pickup.
“Now this is the core of our EV strategy in America,” said Farley. “We’ve got to land the plane.
Ava Levinson
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