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 decision comes as a surprise, given the automotive industry’s push towards electrification and sustainability. According to the announcement, $8.5 billion of the charge is tied to costs associated with killing future electric vehicle (EV) models, while about $6 billion is tied to a now-cancelled battery operation joint venture (JV) with South Korea’s SK On.
This move marks a significant departure from Ford’s previous commitment to EVs, which had been a major focus area for the company in recent years. The decision to cancel future EV models and shift back to internal combustion engine (ICE) and hybrid cars raises questions about the company’s long-term strategy and its ability to compete in a rapidly changing industry.
One of the most significant consequences of this decision is the conversion of Ford’s flagship electric truck-manufacturing factory in Tennessee to produce models with ICE and hybrid engines. This factory had been specifically designed and built to produce electric vehicles, and the decision to repurpose it for ICE and hybrid production is a clear indication of the company’s shift in focus.
The $8.5 billion charge associated with killing future EV models is a significant expense, and it’s likely that this decision will have a major impact on the company’s bottom line. However, Ford’s leadership may believe that this is a necessary step to take in order to refocus the company’s efforts on more profitable and sustainable areas.
The cancellation of the battery operation JV with SK On is also a significant development. This joint venture had been seen as a key part of Ford’s EV strategy, and its cancellation raises questions about the company’s ability to secure the necessary battery technology to support its EV ambitions.
The decision to shift back to ICE and hybrid cars may also be seen as a response to changing market conditions. While there has been a significant push towards electrification in recent years, there are still many consumers who prefer ICE and hybrid vehicles. By refocusing on these areas, Ford may be attempting to capitalize on this demand and regain market share.
However, this decision may also be seen as a step backwards in terms of sustainability. The automotive industry has been under increasing pressure to reduce its environmental impact, and the shift away from EVs may be seen as a move in the wrong direction. Ford’s leadership will need to carefully consider the potential implications of this decision and ensure that the company is still committed to reducing its environmental footprint.
In conclusion, 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 raises questions about the company’s long-term strategy and its ability to compete in a rapidly changing industry. While the decision may be seen as a necessary step to take in order to refocus the company’s efforts on more profitable and sustainable areas, it may also be seen as a step backwards in terms of sustainability.
As the automotive industry continues to evolve, it will be interesting to see how Ford’s decision plays out and how the company will position itself in the market. One thing is certain, however: the decision to cancel EV models and shift back to ICE and hybrid cars is a significant shift in the company’s strategy, and it will have far-reaching implications for the industry as a whole.
The news of Ford’s decision has sent shockwaves through the automotive industry, and it will be interesting to see how other manufacturers respond. As the industry continues to grapple with the challenges of electrification and sustainability, it’s clear that there will be many twists and turns along the way.
For now, it’s clear that 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 company and the industry as a whole.
News Source: https://www.reuters.com/business/autos-transportation/fords-195-billion-ev-writedown-five-things-know-2025-12-16/
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