DEARBORN (dpa-AFX) - Ford has announced its scaling back its electric vehicle strategy, which will result in a hefty $19.5 billion hit to earnings, mostly in this quarter.
But even with that large write-down, the company insists its core business is doing well, thanks to strong demand for gas-powered trucks and SUVs.
As part of this shift, Ford has put its flagship electric pickup, the F-150 Lightning, on hold indefinitely. They've stopped production of the current model this month and haven't given any timeline for when we'll see the next-gen version.
However, Ford mentioned that the upcoming F-150 electric truck is expected to have an impressive 700-mile range and better towing capabilities.
Earlier this year, demand for electric vehicles spiked as buyers rushed to cash in on a $7,500 U.S. tax credit before it expires. Ford reported a 30 percent jump in EV sales during the third quarter, but those electric models still made up less than 6 percent of its total U.S. sales. Estimates from the industry suggest that EV sales have cooled off later in the year.
Ford's change in direction comes in light of some regulatory shifts, including rollbacks on emissions rules and EV incentives.
The company plans to repurpose some of its EV battery capacity for energy infrastructure and data centers, indicating a more comprehensive reevaluation of how those investments will be utilized moving forward.
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