Ford Takes $19.5 Billion Writedown on EV Investments
Ford Motor Company has announced a $19.5 billion writedown tied to its electric vehicle program. The charge reflects canceled projects and scaled-back ambitions in battery-powered models. The automaker is killing several planned EVs amid persistent losses and shifting market conditions.
The impairment ranks among the largest ever recorded by an automotive company. Ford has accumulated $13 billion in losses on its EV business since 2023. U.S. electric vehicle sales dropped approximately 40 percent in November after the federal $7,500 tax credit expired on September 30.
Chief Executive Jim Farley described the pivot as a response to clearer U.S. market signals. Ford will prioritize gasoline-powered vehicles and hybrids. The company is also exploring extended-range EVs that incorporate onboard gasoline engines for charging.
Ford raised its 2025 adjusted earnings guidance to about $7 billion. The previous range stood at $6 billion to $6.5 billion. This improvement stems from cost reductions and stronger performance in internal combustion and hybrid segments.
The decision follows years of heavy investment in electrification. Ford had targeted aggressive EV production ramps. Weakening demand and policy changes prompted the reassessment.
Ford’s Model e division handles electric vehicles separately from its profitable truck and SUV operations. The writedown primarily affects Model e assets and future commitments.
Analysts note the move aligns Ford more closely with consumer preferences for hybrids. Hybrid sales have grown steadily while pure EV adoption slowed in key segments.
Ford continues some EV development but at a reduced scale. The company maintains commitments to certain models already in production.
This writedown highlights broader industry challenges in transitioning to battery power. Several manufacturers have delayed or canceled EV projects in recent months.
Ford shares the EV market retreat with competitors facing similar demand softness. The tax credit expiration accelerated pull-forward purchases earlier in the year.
Ford’s refocus includes bolstering its lineup of traditional powertrains. The company aims to reduce EV-related losses through this strategic shift.
The $19.5 billion charge will impact reported earnings significantly. Ford expects the adjustment to position it better for profitable growth in reduced-emissions vehicles.
