Ford says its ev-strategy was misdirected and will now spend millions of dollars to adjust production plans.
Ford plans to allocate $19.5bn in special items as it reshapes its EV strategy, pulling back from some larger battery models and shifting investment towards hybrids, and extended-range vehicles. It is throwing in its development plans with Renault to make a new generation small electric cars and this week, the EU rolled back on its zero emissions plan which caused concern among fleet professionals.
The charges, tied to a series of changes under its Ford+ plan, will mostly fall in the fourth quarter of 2025, with the remainder recognised in 2026 and 2027. The company says it expects around $5.5bn of the total to be cash outflows, largely in 2026, with the balance in 2027.
The US manufacturer said the moves are intended to align capital spending more closely with customer demand and higher-return opportunities, while setting out a route to profitability for its Model e EV unit by 2029, with yearly improvements anticipated from 2026.
Ford president and CEO Jim Farley said, “This is a customer-driven shift to create a stronger, more resilient and more profitable Ford.
“The operating reality has changed, and we are redeploying capital into higher-return growth opportunities: Ford Pro, our market-leading trucks and vans, hybrids and high-margin opportunities like our new battery energy storage business.”
Ford added that the actions should also boost earnings over time in its Ford Blue and Ford Pro businesses, with early gains expected in 2026.
As part of the overhaul, Ford will abandon plans to build certain larger fully electric vehicles after concluding that the economics no longer stack up, citing weaker-than-forecast demand, high costs and regulatory shifts. The group said its revised approach “prioritises affordability, choice and profits”.
The company now intends to broaden powertrain options, including “a range of hybrids and extended-range electric propulsion”, while concentrating future pure EV development on its new, flexible Universal EV Platform designed for smaller, more affordable models.
