Ford to spend ₹1.77 lakh crore to cancel EV models; shift back to ICE, hybrid cars
In a shocking turn of events, Ford has announced a massive $19.5-billion (about ₹1.77 lakh crore) charge on electric-vehicle investments, signaling a significant shift in the company’s strategy towards electric vehicles. The announcement has sent shockwaves through the automotive industry, with many wondering what this means for the future of electric vehicles.
According to reports, about $8.5 billion of the charge is tied to costs associated with killing future EV models. This is a significant blow to Ford’s electric vehicle ambitions, which had been touted as a key part of the company’s future plans. The decision to cancel these models is a clear indication that Ford is rethinking its approach to electric vehicles.
But that’s not all – about $6 billion of the charge is tied to a now-cancelled battery operation joint venture with South Korea’s SK On. This joint venture had been seen as a key part of Ford’s plans to develop its own battery technology, and its cancellation is a significant setback for the company.
Perhaps most surprisingly, Ford is also converting its flagship electric truck-manufacturing factory in Tennessee to produce models with internal combustion engines (ICE) and hybrid engines. This is a major reversal of the company’s previous plans, which had envisioned the factory as a key part of its electric vehicle production.
So what does this mean for the future of electric vehicles? On the one hand, it’s clear that Ford is facing significant challenges in its efforts to develop and produce electric vehicles. The company’s decision to cancel future EV models and shift its focus back to ICE and hybrid engines suggests that it may be struggling to make electric vehicles viable from a business perspective.
On the other hand, it’s worth noting that Ford is not entirely abandoning its electric vehicle plans. The company has stated that it will continue to produce and sell electric vehicles, including its popular Mustang Mach-E and F-150 Lightning models. However, the scale and scope of these plans may be significantly reduced in light of the company’s new strategy.
It’s also worth considering the potential implications of Ford’s decision for the broader automotive industry. If one of the world’s largest and most successful automakers is struggling to make electric vehicles work, it may be a sign that the industry as a whole is facing significant challenges in its transition to electric vehicles.
Of course, this is not to say that electric vehicles are not the future of the industry. Many experts believe that electric vehicles will play a major role in the automotive industry’s transition to a more sustainable and environmentally-friendly future. However, Ford’s decision suggests that this transition may be more complex and challenging than previously thought.
In terms of what this means for consumers, it’s likely that the impact will be limited in the short term. Ford’s existing electric vehicle models will likely continue to be produced and sold, and the company’s decision to shift its focus back to ICE and hybrid engines may even lead to more competitive pricing and offerings in these areas.
However, in the long term, Ford’s decision may have significant implications for the availability and variety of electric vehicles on the market. If other automakers follow Ford’s lead and scale back their electric vehicle plans, it could limit consumer choice and make it more difficult for those who want to purchase an electric vehicle to find a model that meets their needs.
Overall, Ford’s decision to spend ₹1.77 lakh crore to cancel EV models and shift its focus back to ICE and hybrid engines is a significant development in the automotive industry. While it’s unclear what the long-term implications of this decision will be, it’s clear that Ford is facing significant challenges in its efforts to develop and produce electric vehicles.
As the industry continues to evolve and transition towards a more sustainable and environmentally-friendly future, it will be interesting to see how Ford’s decision plays out and what it means for the future of electric vehicles.
News Source: https://www.reuters.com/business/autos-transportation/fords-195-billion-ev-writedown-five-things-know-2025-12-16/
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