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 (approximately ₹1.77 lakh crore) charge on its electric-vehicle investments. This move is a significant departure from the company’s previous commitment to electric vehicles, and it has sent shockwaves throughout the automotive industry. According to the announcement, $8.5 billion of this charge is tied to costs associated with killing future electric vehicle (EV) models. This decision marks a major shift in Ford’s strategy, as the company is now planning to focus on internal combustion engine (ICE) and hybrid cars.
The news has come as a surprise to many, as Ford had previously been investing heavily in electric vehicles. The company had announced plans to launch several new EV models in the coming years, including a range of electric trucks and SUVs. However, it appears that these plans have now been put on hold, and the company is instead focusing on producing vehicles with traditional ICE and hybrid engines.
One of the main reasons for this shift in strategy is the high cost of producing electric vehicles. Ford had partnered with South Korea’s SK On to develop a new battery operation, but this joint venture has now been cancelled. The cancellation of this project has resulted in a charge of $6 billion, which is a significant portion of the total $19.5-billion charge.
In addition to cancelling its EV models, Ford is also converting 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, but it will now be used to produce a range of vehicles with traditional engines. This move is a significant departure from the company’s previous plans, and it marks a major shift in Ford’s strategy.
The decision to cancel EV models and shift back to ICE and hybrid cars is likely to have significant implications for the automotive industry. Many other manufacturers have been investing heavily in electric vehicles, and this move by Ford may cause them to re-evaluate their own strategies. It is also likely to have an impact on the environment, as electric vehicles are generally considered to be more environmentally friendly than traditional ICE vehicles.
Despite the shift away from electric vehicles, Ford has stated that it will continue to produce some hybrid models. These vehicles will combine traditional ICE engines with electric motors, and they are likely to be more fuel-efficient than traditional ICE vehicles. However, the company’s decision to cancel its EV models and focus on ICE and hybrid cars is a significant departure from its previous commitment to electric vehicles.
The news of Ford’s decision to cancel its EV models and shift back to ICE and hybrid cars has been met with surprise and disappointment from many in the industry. Many had seen Ford as a leader in the transition to electric vehicles, and this move is likely to be seen as a step backwards. However, the company’s decision is likely driven by a desire to reduce costs and improve profitability, and it may be seen as a necessary step in order to remain competitive in the rapidly changing automotive industry.
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 departure from its previous commitment to electric vehicles. The company’s decision to cancel its joint venture with SK On and convert its electric truck-manufacturing factory to produce ICE and hybrid vehicles marks a major shift in its strategy. While this move may be seen as a step backwards by some, it is likely driven by a desire to reduce costs and improve profitability. As the automotive industry continues to evolve, it will be interesting to see how Ford’s decision plays out, and how other manufacturers respond to this shift in strategy.
News Source: https://www.reuters.com/business/autos-transportation/fords-195-billion-ev-writedown-five-things-know-2025-12-16/
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