Ford Motor Company said on Monday it will take a $19.5 billion writedown and scrap several electric vehicle (EV) models, marking a major retreat from its battery-powered ambitions amid declining EV demand and changes under the Trump administration.
The Dearborn, Michigan-based automaker says it will end production of the F-150 Lightning in its current electric form and instead pivot to an extended-range electric model (EREV), which uses a gas-powered generator to recharge the battery. Ford also cancelled its next-generation electric truck, codenamed the T3, and planned electric commercial vans.
“Ford is refocusing on gas, hybrid, and extended-range EVs,” the company said, noting the shift will eventually create thousands of jobs, despite some near-term layoffs at a Kentucky battery plant. Ford expects its global mix of hybrids, extended-range EVs, and pure EVs to reach 50% by 2030, up from 17% today.
The $19.5 billion writedown will be spread over the fourth quarter of 2025, continuing into 2027. About $8.5 billion is linked to cancelled EV models, $6 billion to the dissolution of a battery joint venture with South Korea’s SK On, and $5 billion to programme-related expenses.
Ford raised its 2025 guidance for adjusted earnings before interest and taxes to about $7 billion, up from $6 billion–$6.5 billion.
The move reflects broader industry trends as U.S. EV sales falter. November EV sales fell roughly 40% following the September expiry of the $7,500 federal tax credit. Trump-era policies also reduced federal EV incentives and eased fuel-efficiency rules, encouraging automakers to focus on gas-powered models.
The F-150 Lightning, launched in 2022 with high-profile promotions, saw sales of 25,583 units through November, down 10% from a year earlier, despite initial production to meet 200,000 orders. The planned T3 EV pickup will be replaced by new gas-powered trucks starting in 2029 at Ford’s Tennessee plant.
Ford’s second-generation EV lineup is effectively paused. Future EVs will target affordability, with a midsize model priced around $30,000 planned for release in 2027 from Ford’s California “skunkworks” team, to be built at the Louisville plant.
“This is not for PR or for Wall Street. We built a truck so people can use it in their daily lives,” Ford said in a statement, underscoring the company’s shift toward practical and hybrid solutions.
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