Ford Scales Back Pure EV Push, Books $19.5B Hit While Ramping U.S. Workforce

Ford Motor Co. (F) is pulling back on its aggressive electric vehicle ambitions, announcing a strategic pivot that will see it curtail production of select premium battery-powered models. The shift comes as market dynamics—including cooling demand, production cost pressures, and shifting regulatory landscapes—have undermined the financial case for full-scale EV transition across all vehicle segments.

The Financial Reckoning

The company plans to recognize roughly $19.5 billion in charges, predominantly flowing through fourth-quarter 2025 results, with spillover impacts expected throughout 2026 and 2027. This represents a significant recalibration of Ford’s electrification roadmap and reflects the harsh reality facing traditional automakers adjusting to evolving market conditions.

A Refined Strategy Around Profitability

Rather than an outright retreat, Ford is reshaping its Ford+ strategy to emphasize three pillars: making electric vehicles more affordable, preserving consumer choice through diverse powertrain options, and restoring path-to-profitability discipline. The company will accelerate its hybrid and extended-range electric vehicle portfolio while concentrating pure battery-electric development on its Universal EV Platform—a modular architecture engineered specifically for smaller, cost-competitive models where EV economics work better.

Product and Infrastructure Overhaul

Ford’s lineup evolution includes a reimagined F-150 Lightning featuring extended-range electric capabilities and a new midsize pickup built on the Universal EV Platform, slated for 2027 introduction. Meanwhile, manufacturing footprints in Tennessee and Ohio will transition toward expanded truck and van production, aligning assets with market demand.

A new frontier opens in battery energy storage. Ford is repurposing its Kentucky manufacturing site to produce grid-scale battery systems targeting data centers and large utilities. The company targets at least 20 GWh of annual output by late 2027, positioning it as a competitor in the rapidly expanding energy storage sector.

Jobs and Long-Term Vision

Supporting this capital redeployment strategy, Ford will add thousands of jobs across U.S. operations over coming years. Beyond immediate economic impact, these moves serve Ford’s 2050 carbon neutrality target, which encompasses vehicle tailpipe emissions, manufacturing operations, and supply chain decarbonization.

The strategic recalibration balances near-term profitability with long-term environmental commitments, reflecting Ford’s evolution from wholesale EV evangelist to pragmatic electrification practitioner.