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.
Trump has argued that the pro-EV rules imposed under former President Joe Biden increased costs and made vehicles “much worse,” a stance that has siphoned momentum from the industry’s electrification push.
Ford expects most changes to be reflected in its fourth-quarter results, with about $5.5 billion in cash payments occurring mostly in 2026 and the remainder in 2027.
Despite the sweeping writedown, Ford raised its full-year earnings outlook to about $7 billion, in line with prior guidance, helped by strong performance in its traditional truck and commercial divisions.
Looking ahead, Ford still anticipates 50% of global volume by 2030 will come from hybrids, extended-range EVs, and full battery-electric vehicles—up from 17% today—but the company’s transition will be more measured as consumer affordability challenges and regulatory uncertainty continue to reshape the EV landscape