Ford to spend ₹1.77 lakh crore to cancel EV models; shift back to ICE, hybrid cars
The automotive industry has been abuzz with the news of Ford’s significant shift in strategy, marking a major reversal of its previous commitment to electric vehicles (EVs). In a shocking announcement, Ford revealed that it will be taking a massive $19.5-billion (approximately ₹1.77 lakh crore) charge on its electric-vehicle investments. This move is set to have far-reaching implications for the company, its stakeholders, and the industry as a whole.
At the heart of this decision lies Ford’s plan to cancel several of its future EV models, with a whopping $8.5 billion tied to the costs associated with killing these projects. This is a significant about-face for the company, which had previously been vocal about its commitment to an all-electric future. The cancellation of these EV models is a clear indication that Ford is re-evaluating its priorities and shifting its focus towards more traditional forms of propulsion.
Another significant aspect of Ford’s announcement is the cancellation of its battery operation joint venture (JV) with South Korea’s SK On. The company has allocated $6 billion towards this now-defunct partnership, highlighting the scale of its investment in the EV space. This move is likely to raise questions about the future of Ford’s battery production capabilities and its ability to compete in the rapidly evolving EV market.
Perhaps the most striking aspect of Ford’s announcement, however, is its decision to convert its flagship electric truck-manufacturing factory in Tennessee to produce models with internal combustion engines (ICE) and hybrid engines. This factory, which was previously dedicated to the production of Ford’s electric F-Series trucks, will now be repurposed to manufacture more traditional vehicles. This move is a clear indication that Ford is hedging its bets and preparing for a future where EVs may not be the dominant force that many had predicted.
So, what does this mean for the future of the automotive industry? Ford’s decision to shift its focus away from EVs and towards more traditional forms of propulsion is likely to send shockwaves throughout the sector. The company’s move may be seen as a vote of no confidence in the EV market, which could have a knock-on effect on other manufacturers and investors.
However, it’s also possible that Ford’s decision is a pragmatic response to changing market conditions. The EV market is highly competitive, and the company may have determined that it cannot compete effectively in this space. By shifting its focus towards more traditional forms of propulsion, Ford may be able to reduce its costs and improve its profitability in the short term.
Regardless of the motivations behind Ford’s decision, one thing is clear: the automotive industry is undergoing a period of significant change and upheaval. As companies like Ford navigate the complexities of the EV market, they must also contend with shifting consumer preferences, evolving regulatory landscapes, and intense competition from both established players and new entrants.
As the industry continues to evolve, it will be fascinating to see how Ford’s decision plays out. Will the company’s shift away from EVs prove to be a wise move, or will it ultimately hinder its ability to compete in a market that is increasingly dominated by electric vehicles? Only time will tell, but one thing is certain: Ford’s decision to spend ₹1.77 lakh crore to cancel EV models and shift back to ICE and hybrid cars is a significant development that will have far-reaching implications for the automotive industry.
In conclusion, Ford’s announcement is a major reversal of its previous commitment to electric vehicles, and it will be interesting to see how this decision plays out in the coming months and years. As the automotive industry continues to navigate the complexities of the EV market, companies like Ford must be prepared to adapt and evolve in response to changing market conditions.
News Source: https://www.reuters.com/business/autos-transportation/fords-195-billion-ev-writedown-five-things-know-2025-12-16/
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