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Ford Takes $19.5 Billion Charge, Halts All-Electric F-150 Lightning in EV Strategy Reset

Ford cites weaker U.S. EV demand after tax-credit changes to justify a profitability-focused reset.

Overview

  • Ford outlined roughly $19.5 billion in special items—about $8.5 billion in EV asset writedowns, ~$6 billion tied to dissolving its SK On battery joint venture, and ~$5 billion in program costs—with most recorded in Q4 and cash impacts extending through 2027.
  • The company will end the all-electric F-150 Lightning and introduce an extended-range EV version with a gas generator, while canceling the clean-sheet T3 pickup and next-generation electric commercial vans.
  • Ford is shifting investment to hybrids, plug-in/extended-range models and smaller, lower-cost EVs on a new Universal EV Platform, with a fully connected midsize pickup planned for Louisville assembly in 2027.
  • Battery plants in Kentucky and Michigan will be repurposed for a stationary energy storage business targeting about 20 GWh of annual capacity, with production and shipments expected in 2027.
  • Ford raised its 2025 adjusted EBIT outlook to about $7 billion and pointed to slumping U.S. EV sales after the $7,500 credit expired, noting near-term layoffs at a Tennessee battery site but projecting net hiring over time.