Recording major special charges tied to scaling back electric vehicle plans, Ford signals a sharp rethink of its EV strategy.
Ford Motor announced it expects to record approximately $19.5 billion in special items linked to a major restructuring of its business priorities and a pullback in its all-electric vehicle (EV) investments. Most of the charges are expected in the fourth quarter, with an additional $5.5 billion in cash charges spread through 2027, the company said.
The charges, which include $8.5 billion in write-downs of EV assets, will affect Ford’s net results but not its adjusted earnings. The automaker reiterated its guidance for adjusted earnings before interest and taxes (EBIT) of around $7 billion in 2025, in line with targets set earlier this year.
Ford’s new strategy marks a pivot from its initial EV expansion plans. The company will shift investments towards hybrid vehicles, including plug-in models, rather than fully electric trucks. Plans for the next generation of large all-electric trucks have been scrapped in favour of smaller, more affordable EVs. The company will also rebalance investments in core products such as trucks and SUVs.
The changes fall under CEO Jim Farley’s “Ford+” restructuring plan, first launched in 2021 to accelerate EV growth. Speaking to CNBC, Farley explained the decision as market driven: “We’re following customers to where the market is, not where people thought it was going to be, but where it is today.”
The move underscores Ford’s pragmatic approach to the rapidly evolving EV market, balancing customer demand, profitability, and core product focus amid global automotive shifts.
