Ford to spend ₹1.77 lakh crore to cancel EV models; shift back to ICE, hybrid cars
In a shocking move, 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. The announcement has sent ripples through the automotive industry, with many questioning the future of electric vehicles (EVs) and the role of traditional internal combustion engine (ICE) vehicles.
According to the company, $8.5 billion of the charge is tied to costs associated with killing future EV models. This move is a significant departure from Ford’s previous commitment to invest heavily in EV technology and expand its electric lineup. The decision to cancel future EV models is a clear indication that the company is reassessing its priorities and shifting its focus towards more traditional powertrains.
Another significant portion of the charge, about $6 billion, is tied to a now-cancelled battery operation joint venture (JV) with South Korea’s SK On. This JV was intended to support Ford’s electric vehicle ambitions, but its cancellation suggests that the company is no longer committed to developing its own battery technology.
Perhaps the most significant aspect of Ford’s announcement is the decision to convert its flagship electric truck-manufacturing factory in Tennessee to produce models with ICE and hybrid engines. This factory was previously dedicated to the production of electric vehicles, including the highly anticipated F-150 Lightning. The conversion of this factory is a clear indication that Ford is shifting its focus away from EVs and towards more traditional powertrains.
The implications of this move are significant, and it remains to be seen how the market will respond. On one hand, the shift away from EVs could be seen as a positive move for Ford, as it allows the company to focus on more traditional and profitable powertrains. On the other hand, the cancellation of future EV models and the conversion of the Tennessee factory could be seen as a setback for the company’s efforts to reduce its environmental impact and meet increasingly stringent emissions regulations.
It’s also worth noting that Ford’s decision to shift away from EVs comes at a time when many other manufacturers are investing heavily in electric technology. Companies like Tesla, Volkswagen, and General Motors have all made significant commitments to EV development, and it remains to be seen how Ford’s decision will affect its competitiveness in the market.
In terms of the financial implications, the $19.5-billion charge is a significant hit for Ford. The company has stated that the charge will be taken in the fourth quarter of this year, and it’s likely to have a significant impact on the company’s bottom line. However, it’s worth noting that the charge is a one-time event, and the company is likely to benefit from the shift away from EVs in the long term.
Overall, Ford’s decision to cancel future EV models and shift its focus towards more traditional powertrains is a significant move that has far-reaching implications for the automotive industry. While it’s unclear how the market will respond, one thing is certain: the future of electric vehicles is more uncertain than ever.
As the industry continues to evolve and adapt to changing consumer demands and regulatory requirements, it will be interesting to see how Ford’s decision plays out. Will the company’s shift away from EVs be a successful move, or will it ultimately prove to be a mistake? Only time will tell.
In conclusion, Ford’s announcement is a significant development that has the potential to reshape the automotive industry. The company’s decision to cancel future EV models and shift its focus towards more traditional powertrains is a clear indication that it is reassessing its priorities and adapting to changing market conditions. While the implications of this move are significant, it’s unclear how the market will respond. One thing is certain, however: the future of electric vehicles is more uncertain than ever.
News Source: https://www.reuters.com/business/autos-transportation/fords-195-billion-ev-writedown-five-things-know-2025-12-16/
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