Ford Scales Back its EV Plans, Writes Off $19.5 Billion in Losses

Ford is abandoning efforts to build large battery-powered vehicles, pointing to sluggish sales and EV policy reversals from Washington. The Detroit automaker will redirect resources toward profitable hybrids and conventional engines alongside smaller, budget-friendly electric models.

It also expects to take a $19.5 billion loss from this strategy after making heavy investments into electrification. These changes to Ford’s EV arrive as the Trump administration loosens efficiency mandates that previously encouraged electrification across the industry. Ford says the economics of pursuing large-format electric production have crumbled amidst disappointing sales volumes, excessive expenses and shifting regulatory frameworks.

Chief executive Jim Farley characterized the pivot as a response to market realities while building a more durable and lucrative business. As circumstances around EV production changed, the automaker was prompted to reallocate investment dollars toward better-returning segments like pickup trucks, commercial vans, hybrid powertrains and stationary power storage operations, Farley explained.

Consequently, the F-150 Lightning will disappear as a pure battery model under the revised plans. Instead, the popular pickup will incorporate a gas-powered range extender combined with electric drive systems, tapping into American demand for hybrids.

Ford also scrapped the development of an upcoming electric cargo van to focus more on conventional and hybrid commercial vehicles instead. General Motors made a similar pivot from pure electric cars to hybrids and internal combustion engine (ICE) cars four months ago. The rival manufacturer announced a $1.6 billion loss as it scaled back its electric ambitions due to softening buyer interest across American markets.

Battery-vehicle uptake in the U.S. significantly trails rates in China, Britain and continental Europe. Industry observers point to comparatively modest public backing for the technology compared to more aggressive incentive programs abroad that encouraged faster adoption rates, particularly in China.

In recent months, Washington has withdrawn numerous supports and requirements that would have accelerated electric adoption. This includes federal tax incentives of up to $7,500 on new qualifying battery, plug-in hybrid and hydrogen-fuel models.

Manufacturers predicted slowing growth once the Trump administration eliminated the subsidies. Farley remarked then that the electric sector would prove far smaller than earlier forecasts suggested during the industry’s optimistic phase several years ago. Recent regulatory rollbacks have also reversed previous efficiency targets that environmental advocates hoped would spur mass adoption across vehicle segments. Prior standards aimed to eliminate over 700 million metric tons of carbon dioxide by mid-century through stricter requirements.

Farley praised the regulatory retreat during an industry gathering, describing it as sensible policy despite criticism from conservation groups who called it regressive for manufacturing standards and environmental health outcomes. Updated requirements better reflect what buyers actually want, he maintained during public remarks.

These American developments coincide with European Union reconsideration of rules that would effectively prohibit new combustion sales by 2035. Berlin has pushed for modifications citing intense pressure from Asian competitors advancing quickly in battery technology and production capabilities. Brussels officials will announce revised proposals shortly.

As the automotive market evolves in tandem with the shifting policies from Washington, industry players like Massimo Group (NASDAQ: MAMO) will have to be extremely flexible in their strategies in order to retain and even grow their market share.

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