Ford Motor (NYSE:F) will absorb a massive $19.5 billion writedown after slashing its electric vehicle (EV) strategy, scrapping long-planned investments and pulling back production in response to a steep drop in consumer demand.
The charge, announced Monday, ranks among the largest EV-related financial hits suffered by a global automaker.
The company said it will halt investment in several big-ticket EV initiatives, including plans to build large battery-powered pickup trucks, after “lower than expected” uptake triggered billions in operating losses.
Instead, Ford will redirect capital toward its profitable conventional trucks and vans, alongside a shift to smaller, lower-cost EVs and the launch of a new battery energy storage business.
The writedown includes $6 billion tied to the shutdown of a joint venture with South Korea’s SK Group, which had intended to build a massive battery plant in Kentucky to anchor Ford’s EV growth.
That plan has now been scrapped.
Ford’s retreat comes as President Donald Trump rolls back EV-friendly regulations and eliminates the $7,500 federal tax credit for buyers of electric vehicles.
Demand for EVs in the U.S. has dropped sharply, with automakers warning that the removal of incentives has tilted economics back toward gas-powered models.