Ford Motor said Monday it will take a massive $19.5 billion writedown and cancel several major electric-vehicle programs, marking one of the clearest signs yet that the global auto industry is retreating from its once-ambitious push into battery-powered vehicles. The move comes as electric vehicle demand weakens sharply in the United States and federal support for EVs is rolled back under President Donald Trump’s administration.
The Dearborn, Michigan-based automaker said it will end production of the all-electric version of the F-150 Lightning, one of its most high-profile EV launches, and instead shift toward an extended-range electric version. The new approach relies on a gas-powered generator to recharge the battery, effectively blending electric driving with internal combustion technology. Ford is also scrapping its next-generation electric pickup truck, known internally as the T3, along with planned electric commercial vans.
Rather than continuing to pour money into large battery-powered vehicles, Ford said it will pivot aggressively toward gasoline-powered and hybrid models. The company expects to hire thousands of workers over time as it expands these programs, although layoffs are expected in the near term at a jointly owned battery plant in Tennessee. Ford said hybrids, extended-range EVs and pure EVs combined will account for about 50% of its global vehicle mix by 2030, up from roughly 17% today.
The $19.5 billion writedown will be spread over several years, beginning primarily in the fourth quarter and continuing through 2027. About $8.5 billion of the charge is tied to the cancellation of planned EV models, while roughly $6 billion relates to the dissolution of a battery joint venture with South Korea’s SK On. Another $5 billion stems from what Ford described as program-related expenses.
Despite the writedown, Ford raised its outlook for 2025 adjusted earnings before interest and taxes to about $7 billion, up from its prior guidance of $6 billion to $6.5 billion, signaling confidence that its strategic reset will improve profitability.
Ford’s reversal reflects a broader industry shift after automakers invested hundreds of billions of dollars into electric vehicles earlier in the decade. That momentum has stalled as the economics of EVs deteriorated and government incentives faded. The outlook worsened significantly this year after the Trump administration rolled back federal support for electric vehicles and eased tailpipe emissions rules, reducing pressure on automakers to move away from gasoline-powered cars.
U.S. electric vehicle sales dropped by about 40% in November following the September 30 expiration of a $7,500 consumer tax credit that had helped drive demand for more than 15 years. At the same time, a sweeping tax and spending bill passed in July froze fines imposed on automakers for violating fuel-economy standards, further reducing the cost of sticking with gas-powered vehicles.
“Rather than spending billions more on large EVs that now have no path to profitability, we are allocating that money into higher-returning areas,” said Andrew Frick, who oversees Ford’s gas and electric vehicle operations.
The F-150 Lightning once symbolized Ford’s electric ambitions. When production began in 2022, the truck was launched with heavy marketing and celebrity attention, including a promotional song written by comedian Jimmy Fallon. Ford ramped up capacity to meet an early surge of roughly 200,000 reservations, but demand ultimately fell short. Through November, Ford sold 25,583 Lightnings this year, down 10% from the same period last year.
The now-canceled T3 truck was intended to be the successor to the Lightning and a cornerstone of Ford’s second-generation EV lineup. It was slated for production at a new manufacturing complex in Tennessee. Instead, Ford plans to build new gas-powered trucks at the facility beginning in 2029, effectively replacing the electric pickup program.
With Monday’s announcement, Ford has effectively dismantled its previously announced second wave of electric vehicles. Looking ahead, the company said it will focus its EV efforts on smaller, more affordable models developed by a skunkworks team in California. The first vehicle from that group, a midsize electric truck priced at around $30,000, is expected to go on sale in 2027 and will be built at Ford’s Louisville, Kentucky plant.
