DEARBORN, Mich.—Ford Motor Co. plans to take about $19.5 billion in special charges as it scales back parts of its electric-vehicle strategy, abandoning some larger battery-electric models and redirecting investment toward hybrids and extended-range electric vehicles (EREVs)—a move that underscores cooling U.S. EV demand and growing pressure on EV economics, according to GlobalData.
The charges, tied to changes under Ford’s Ford+ plan, will be recognized mostly in the fourth quarter of 2025, with the remainder spread into 2026 and 2027. About $5.5 billion will be cash outflows, primarily in 2026 and 2027. Ford said the reset is aimed at better aligning capital spending with customer demand and higher-return opportunities, while putting its Model e EV unit on a path to profitability by 2029, with annual improvements expected beginning in 2026, GlobalData reported.
As part of the overhaul, Ford is scrapping plans for certain larger fully electric vehicles, citing weaker-than-expected demand, high costs and regulatory changes that have undermined their business case. Instead, the automaker will concentrate pure-EV development on a new low-cost Universal EV Platform for smaller, more affordable models, while expanding hybrid and EREV offerings—an approach Ford says prioritizes “affordability, choice and profits,” according to GlobalData.
The shift has direct implications for U.S. EV production and values. Ford will move the next-generation F-150 Lightning to an extended-range electric architecture and end production of the current model, reallocating workers to build gasoline and hybrid F-150s. In North America, Ford will also replace a planned electric commercial van with a lower-cost model offered with gasoline and hybrid powertrains. Together, the moves suggest automakers are bracing for slower EV adoption and more value pressure on large, high-priced battery-electric vehicles in the U.S., even as electrification continues in more flexible and cost-conscious forms, GlobalData said.
By 2030, Ford expects about half of its global sales to come from hybrids, EREVs and fully electric vehicles, up from an estimated 17% in 2025, while also raising its 2025 adjusted EBIT guidance to about $7 billion. The strategy reset comes as partners and competitors alike recalibrate in a cooling EV market, reinforcing signs that the U.S. EV transition is entering a more pragmatic, demand-driven phase, according to GlobalData.