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 growing trend of electric vehicles (EVs) in the automotive industry. However, it appears that Ford is taking a step back from its EV ambitions, at least for the time being.
According to the company, $8.5 billion of the charge is tied to costs associated with killing future EV models. This move is likely to raise eyebrows, as many had expected Ford to continue investing in electric vehicles. The company had previously announced plans to launch several new EV models, but it seems that those plans are now being scrapped.
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. The JV was announced last year, with the goal of developing and manufacturing battery cells for Ford’s EVs. However, it seems that the partnership is no longer viable, and Ford is taking a significant hit as a result.
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 clear indication that Ford is shifting its focus away from electric vehicles and back towards more traditional powertrains.
The decision to shift away from EVs is likely to be met with skepticism by many in the industry. Electric vehicles have been gaining popularity in recent years, with many countries implementing policies to encourage their adoption. Additionally, several major automakers have announced plans to transition their entire lineups to electric vehicles in the coming years.
So, what could be behind Ford’s decision to shift away from EVs? One possible explanation is that the company is facing significant challenges in terms of EV development and production. Electric vehicles require significant investments in new technologies, manufacturing processes, and supply chains. Additionally, the market for EVs is still relatively small, and Ford may be concerned about the viability of its EV models.
Another possible explanation is that Ford is simply responding to changing market conditions. The automotive industry is highly competitive, and companies must be able to adapt quickly to changing consumer preferences and technological advancements. Ford may be recognizing that the market for EVs is not growing as quickly as expected, and that there is still significant demand for traditional ICE and hybrid vehicles.
Regardless of the reasons behind Ford’s decision, it is clear that the company is taking a significant risk. The shift away from EVs could potentially harm the company’s reputation and relationships with customers who are interested in environmentally friendly vehicles. Additionally, Ford may be missing out on opportunities to develop new technologies and establish itself as a leader in the EV market.
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 in the automotive industry. While the company’s reasons for making this decision are not entirely clear, it is likely that Ford is facing significant challenges in terms of EV development and production. As the industry continues to evolve, it will be interesting to see how Ford’s decision plays out and whether the company will ultimately regret its decision to shift away from electric vehicles.
News Source: https://www.reuters.com/business/autos-transportation/fords-195-billion-ev-writedown-five-things-know-2025-12-16/
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