DEARBORN, Mich. — Ford Motor Co. said it will take $19.5 billion in EV-related charges as it scraps several battery-electric vehicle programs and shifts more resources to hybrids, extended-range EVs and gasoline-powered models, Dec. 16, 2025. The move follows the end of federal clean-vehicle tax credits for purchases after Sept. 30 and a steep post-incentive demand slump that has complicated the business case for large, battery-only trucks and vans.
Ford said the charges will be recorded largely in the fourth quarter, with additional impacts stretching into 2026 and 2027, and estimated the cash effect at about $5.5 billion spread mainly across 2026 and 2027, according to a company statement outlining the revamped strategy. Reuters reported Ford’s plan includes ending the current generation of the F-150 Lightning, canceling a next-generation electric pickup program known internally as T3, and abandoning some planned electric commercial vans as it targets a more flexible mix of powertrains and lower-cost EVs.
Ford EV writedown: what’s being written down and what changes now
Ford’s $19.5 billion charge is less a single product miss than a broad reset of how the company intends to compete in an uneven EV market. In announcing the retreat, Ford said it no longer plans to produce certain larger EVs “where the business case has eroded” and is redirecting capital toward higher-return parts of the business, including trucks, commercial vehicles, hybrids and a new battery energy storage business.
As part of the pivot, Ford plans to convert its next F-150 Lightning into an extended-range electric vehicle — an EV that uses a gas-powered engine as a generator to recharge the battery — rather than remaining a battery-only pickup. Reuters reported the company is also replacing planned EV production at its Tennessee complex with gas-powered trucks starting in 2029, while keeping a future EV program focused on more affordable models, including a roughly $30,000 midsize electric pickup expected to launch in 2027, according to Ford’s announcement and related reporting.
Product shift: From large, battery-only vehicles toward hybrids and extended-range EVs, while reserving “pure EV” bets for smaller, lower-cost platforms.
Timing shift: Major EV and manufacturing decisions are pushed later in the decade as the company tries to match capacity to real demand.
Capital shift: More spending aimed at profitable trucks and commercial vehicles, plus energy storage, rather than scaling multiple large EV programs at once.
Why the U.S. EV-credit cliff changed the math
Ford’s retreat landed after the federal tax credit environment changed abruptly. The Internal Revenue Service has said the One Big Beautiful Bill Act accelerated the termination of several incentives, including the new clean vehicle credit (Section 30D) and the previously owned clean vehicle credit (Section 25E), for vehicles “acquired after Sept. 30, 2025,” according to IRS guidance published in 2025. Ford and other automakers have argued for years that incentives and charging buildout matter most for mainstream buyers, not early adopters.
The demand drop showed up quickly in market data. Cox Automotive said estimated U.S. new EV sales totaled 70,255 vehicles in November — down 41.2% from a year earlier — and EV share fell to 5.4% of total sales, with the expiration of the federal tax credit “continuing to weigh on demand,” according to Cox’s November 2025 EV Market Monitor. The same report listed Ford among the top five EV brands by volume in November, underscoring that Ford remained a significant player even as the category softened.
Hybrids surge — and Ford adds energy storage to the playbook
Ford framed the reset as an attempt to “follow customers” and build a more resilient lineup: more hybrid options alongside efficient gas engines, plus extended-range EVs for buyers who want electric torque and everyday EV driving without relying solely on public chargers.
The company also said it plans to launch a battery energy storage business aimed at selling storage systems to support energy infrastructure and data centers. Ford said it intends to begin shipping battery energy storage systems in 2027 and to repurpose some battery-manufacturing capacity for that effort.
Ford’s longer-term goal, the company said, remains to reach profitability in its EV business by 2029, while raising its 2025 adjusted earnings forecast to about $7 billion. The company also reiterated an ambition for roughly 50% of its global volume to be hybrids, extended-range EVs and fully electric vehicles by 2030 — up from 17% in 2025.
Renault pact targets Europe as Ford leans into partnerships
Even as Ford trims big-EV ambitions in the United States, it is trying to stay relevant in regions where electrification is still a competitive necessity. Ford said it will partner with Renault Group to develop two Ford-branded electric passenger vehicles on Renault’s Ampere platform, with vehicles expected in showrooms starting in 2028. The companies also plan to explore a collaboration to jointly develop and manufacture select light commercial vehicles in Europe, according to Ford’s Dec. 9 European strategy announcement.
In that statement, Ford positioned Europe as a proving ground for how legacy automakers can compete in an electrifying global market while managing costs — a contrast to the softer U.S. demand signals that helped drive the write-down.
Continuity: the pivot has been building for years
Ford’s $19.5 billion charge is dramatic, but the direction of travel has been visible across a series of earlier decisions as the company chased profitability and slowed its EV rollout:
Jan. 19, 2024: Ford said it would cut F-150 Lightning production to a single shift starting April 1 as demand softened, while increasing output of Broncos and Rangers, as previously reported by WardsAuto.
Aug. 21, 2024: Ford said it took a $1.9 billion hit after canceling plans for an all-electric large SUV in the United States and leaning more into hybrids, as reported by The Guardian.
Aug. 11, 2025: Ford confirmed plans for a midsize EV pickup priced around $30,000 as part of a new “universal” EV platform push, as reported by Edmunds.
What to watch next
Ford’s reset creates two near-term tests: whether hybrids and extended-range EVs can protect margins while demand and policy remain unsettled, and whether Ford can still deliver lower-cost EVs — including the promised midsize pickup — without repeating the cost overruns that have haunted large battery-electric programs. The Renault partnership, meanwhile, will signal how far Ford is willing to go in Europe to stay competitive through partnerships rather than going it alone.
