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 (approximately ₹1.77 lakh crore) charge on its electric-vehicle investments. This decision comes as a major setback to the company’s EV ambitions, with a significant portion of the charge tied to the costs associated with cancelling future electric vehicle models. The news has sent shockwaves through the automotive industry, with many questioning the future of electric vehicles and the strategies of major manufacturers.
According to the announcement, about $8.5 billion of the charge is directly related to the costs of killing off future EV models. This is a significant blow to Ford’s EV plans, which had been touted as a key part of the company’s future growth strategy. The decision to cancel these models is likely to have a major impact on the company’s product lineup and its ability to compete in the increasingly competitive EV market.
In addition to the cancellation of EV models, Ford is also writing off about $6 billion related 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 and manufacture its own EV batteries, and its cancellation is a significant setback to the company’s EV ambitions.
But perhaps the most surprising aspect of Ford’s announcement is the decision to convert its flagship electric truck-manufacturing factory in Tennessee to produce models with internal combustion engines (ICE) and hybrid engines. This move is a major shift away from the company’s previous focus on electric vehicles and is likely to be seen as a significant blow to the EV industry as a whole.
The decision to shift away from EVs and back to ICE and hybrid engines is likely to be driven by a number of factors, including changing market demand and the high costs associated with developing and manufacturing electric vehicles. Despite the growing popularity of EVs in recent years, many consumers are still hesitant to make the switch due to concerns about range, charging time, and cost. Additionally, the development and manufacturing of EVs is a complex and expensive process, requiring significant investments in new technologies and manufacturing facilities.
Ford’s decision to cancel its EV models and shift back to ICE and hybrid engines is likely to have significant implications for the company’s future growth and profitability. While the move may help the company to reduce its costs and improve its short-term financial performance, it is likely to limit its ability to compete in the increasingly competitive EV market. As governments around the world continue to implement stricter emissions regulations and consumers become increasingly environmentally conscious, the demand for EVs is likely to continue to grow, and companies that are not well-positioned to meet this demand may struggle to remain competitive.
The news of Ford’s decision to cancel its EV models and shift back to ICE and hybrid engines is also likely to have significant implications for the broader automotive industry. As one of the largest and most influential manufacturers in the world, Ford’s decisions have a significant impact on the market as a whole. The company’s shift away from EVs may lead other manufacturers to re-evaluate their own EV strategies, and could potentially slow the growth of the EV market as a whole.
In conclusion, Ford’s decision to spend ₹1.77 lakh crore to cancel its EV models and shift back to ICE and hybrid engines is a significant blow to the EV industry and a major shift away from the company’s previous focus on electric vehicles. While the move may help the company to reduce its costs and improve its short-term financial performance, it is likely to limit its ability to compete in the increasingly competitive EV market and may have significant implications for the broader automotive industry.
As the automotive industry continues to evolve and grow, it will be interesting to see how Ford’s decision plays out and how other manufacturers respond to the changing market landscape. One thing is certain, however: the future of the automotive industry will be shaped by the decisions of major manufacturers like Ford, and the impact of those decisions will be felt for years to come.
News Source: https://www.reuters.com/business/autos-transportation/fords-195-billion-ev-writedown-five-things-know-2025-12-16/
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