Ford is ending its electric vehicle strategy, drawing a clear line under one of the most expensive transformations in its corporate history. The US automaker is recording $19.5 billion in write-downs, reacting to a significant drop in demand for electric vehicles and changing political conditions in the US. Going forward, profitability, predictability, and robust margins will once again be the focus of its model policy. (marktscreener: 15.12.25)
Ford Ends Electric Vehicle Strategy and Stops Key Projects
Ford is ending its electric vehicle strategy not gradually, but with a clean break. Production of the F-150 Lightning as a purely electric vehicle is being discontinued, even though the model was once considered a symbol of the electric future. The planned electric pickup truck, internally codenamed T3, is also being completely canceled, as are several electric commercial vehicle projects.
Ford is effectively abandoning its second generation of large electric vehicles. Instead, the company is focusing on new priorities because its initial sales projections have not materialized. Long-range hybrids and conventional powertrains are now considered more economically viable.
Ford’s billion-dollar loss will impact its balance sheet long-term
The Ford billion-dollar loss will be spread over several years and will extend at least until 2027. Approximately $8.5 billion is attributable to canceled vehicle programs, while about $6 billion resulted from the withdrawal from a battery joint venture with its South Korean partner SK On. A further $5 billion is related to project-specific expenses.
Despite this burden, Ford is raising its forecast for operating profit in 2025. It now expects earnings before interest and taxes (EBIT) of around $7 billion. The company is thus making it clear that the change in strategy is not seen as a weakness, but rather as a fundamental economic realignment.
Trump’s Electric Vehicle Policy Changes Investment Decisions
The Trump electric vehicle policy is acting as an additional accelerator of this shift in policy. Government subsidies for electric vehicles were eliminated, while emissions regulations were relaxed. This reduced the regulatory pressure on manufacturers to quickly sell high volumes of all-electric vehicles.
At the same time, the US government under Trump suspended penalties for exceeding fuel consumption limits. This significantly improved the conditions for gasoline-powered models for automakers like Ford, making investments more realistic.
US Electric Vehicle Demand Loses Significant Momentum
US electric vehicle demand has developed considerably weaker than expected this year. After the expiration of the $7,500 tax credit for buyers, sales figures plummeted. In November alone, the decline was around 40 percent.
Ford also felt this trend immediately. Only 25,583 F-150 Lightning vehicles were sold by November. This represented a decrease of ten percent compared to the previous year, even though production capacity was significantly higher.
Ford’s Hybrid Strategy Replaces Previous Electric Visions
Ford’s hybrid strategy is now clearly taking center stage in its product planning. Conventional gasoline engines and hybrid vehicles are considered reliable revenue streams because they appeal to a broad customer base and deliver stable margins. Ford is halting its electric offensive but is not completely withdrawing from electrification.
Among other things, an EREV model is planned, which combines an electric motor with a gasoline-powered generator. This technology is intended to alleviate range anxiety and simultaneously win over customers who are hesitant about pure electric vehicles.
Affordable Electric Vehicles Remain a Calculated Experiment
Ford is ending its electric vehicle strategy in the high-priced segment but is sticking to a limited relaunch. A small development team in California is working on affordable electric vehicles that are expected to be significantly cheaper than previous models.
The first model is expected to cost around $30,000 and launch in 2027. The mid-size electric truck will be produced at the Louisville plant. Ford’s billion-dollar loss, Trump’s electric car policy, and the weak demand for electric cars in the USA are directly factored into the planning, because only economically viable concepts should be retained.