Ford Scales Back Electric Car Ambitions Amid Financial Struggles
Business
Ford has revised its ambitious electric vehicle plans amid financial losses, deciding to focus on producing hybrids and gasoline-powered vehicles instead.
The company will no longer produce the electric F-150 Lightning pickup, and instead will offer a model with an extended driving range that uses a gasoline engine. Ford also announced changes to its electric vehicle center in Tennessee, which will be renamed the Tennessee Truck Plant and will begin producing new affordable gasoline trucks. The Ohio plant will start producing a new van in both gasoline and hybrid variants.
According to Ford, since 2023, the company has incurred $13 billion in losses from electric vehicle production and expects write-offs of $19.5 billion in the fourth quarter. CEO Jim Farley said these changes were aimed at improving the company’s financial position and reallocating capital toward higher-margin growth areas.
Ford now expects that by 2030, half of its global sales will consist of hybrids, extended-range electric vehicles, and fully electric models, up from 17% this year.
The shift in strategy also coincides with a political shift in the United States: the Trump administration lowered electric vehicle sales targets and relaxed emissions requirements, which has affected automakers' decisions.
According to Ford, since 2023, the company has incurred $13 billion in losses from electric vehicle production and expects write-offs of $19.5 billion in the fourth quarter. CEO Jim Farley said these changes were aimed at improving the company’s financial position and reallocating capital toward higher-margin growth areas.
Ford now expects that by 2030, half of its global sales will consist of hybrids, extended-range electric vehicles, and fully electric models, up from 17% this year.
The shift in strategy also coincides with a political shift in the United States: the Trump administration lowered electric vehicle sales targets and relaxed emissions requirements, which has affected automakers' decisions.
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