Ford Motor Co. revealed on Monday that it has written down $19.5 billion and is planning to halt production on several electric vehicle models. This marks a significant retreat by the auto industry from electric models, largely influenced by policies from the Trump administration and a dip in EV demand.
Based in Dearborn, Michigan, Ford stated it will cease the production of the F-150 Lightning electric vehicle, shifting its focus instead to creating a longer-range electric model and a hybrid version known as EREV, which employs a gas generator for battery charging. Plans are also being scrapped for the next-generation electric truck, codenamed T3, and a proposed electric commercial van.
Moving forward, Ford intends to concentrate on gas-powered and hybrid vehicles, with a plan to hire thousands of workers in the long run, despite some immediate layoffs anticipated at a jointly-operated battery facility in Tennessee. The company forecasts a global mix of hybrids, long-range EVs, and pure EVs will grow to 50% by 2030, which is an increase from the current 17%.
Ford plans to record these writedowns mainly in the fourth quarter, continuing through 2027. Approximately $8.5 billion is tied to the cancellation of planned EV models, while around $6 billion relates to ending a battery joint venture with South Korea’s SK On, and $5 billion is attributed to “program-related costs.”
The automaker has also increased its 2025 forecast for adjusted pre-tax earnings from a previous estimate of $6 billion to $6.5 billion, now estimating around $7 billion.
This shift by Ford reflects broader trends in the auto industry responding to a downturn in EV demand, despite manufacturers investing hundreds of billions in electric vehicle technology earlier this year. This year’s effects were intensified as the Trump administration rolled back federal EV incentives and relaxed emissions standards, potentially leading to an increase in gasoline vehicle sales.
U.S. electric vehicle sales experienced a significant drop of about 40% in November after a longstanding $7,500 consumer tax credit expired on September 30. Additionally, a major tax and spending bill passed in July included a hold on fines for automakers exceeding fuel economy limits.
Andrew Frick, head of Ford’s gas and electric vehicle sector, noted, “Instead of pouring billions into large electric vehicles with no revenue potential, we’re redirecting investments to more lucrative sectors.”
The F-150 Lightning was first introduced in 2022 amidst much excitement, even inspiring a song by comedian Jimmy Fallon. Though Ford ramped up production to meet an influx of 200,000 orders, actual sales have lagged, with just 25,583 units sold through November—reflecting a 10% decline compared to the same timeframe the previous year.
The T3 truck, designed as the successor to the F-150 Lightning, was aimed to be central to Ford’s next-gen EV range and was specifically engineered for manufacturing at a new facility in Tennessee. Ford currently plans to replace EV pickup production at this facility with new gasoline truck models starting in 2029.
With this recent announcement, Ford effectively puts the brakes on its second-generation EV model aspirations. Looking ahead, the focus for the company’s future EV lineup will pivot towards more affordable offerings developed by a team in California often referred to as the Skunk Works. Their first model is set to be priced around $30,000 and is expected to launch in 2027 as a mid-size electric truck built at Ford’s Louisville plant.
