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 (about ₹1.77 lakh crore) charge on electric-vehicle investments, marking a significant shift in the company’s strategy towards electric vehicles. The move comes as a surprise, given the automotive industry’s recent push towards electrification and the growing demand for eco-friendly vehicles. According to the company, $8.5 billion of this 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 decision is a significant departure from Ford’s previous commitment to electric vehicles. The company had earlier announced plans to invest heavily in EV technology, with a goal of achieving 100% electrification across its model lineup. However, it seems that the company has now changed its stance, and is instead opting to focus on traditional internal combustion engine (ICE) and hybrid vehicles. This shift in strategy is likely to have significant implications for the automotive industry as a whole, and may potentially impact the growth of the EV market.
One of the most notable aspects of Ford’s new strategy is the conversion of 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, and was seen as a key part of Ford’s EV plans. However, with the company’s shift in focus, it seems that this factory will now be repurposed to produce more traditional vehicles. This move is likely to be seen as a significant blow to the EV industry, and may potentially impact the confidence of investors and consumers in the sector.
The reasons behind Ford’s decision to cancel its EV models and shift back to ICE and hybrid vehicles are not entirely clear. However, it is likely that the company has taken a number of factors into account, including the current market demand for EVs, the cost of production, and the regulatory environment. The company may have also considered the potential risks and challenges associated with investing in EV technology, including the high upfront costs and the uncertainty surrounding future demand.
Despite the challenges facing the EV industry, many experts believe that the shift towards electrification is inevitable. Governments around the world are implementing increasingly stringent regulations to reduce emissions and promote the adoption of eco-friendly vehicles. Additionally, consumers are becoming increasingly aware of the environmental impact of their purchasing decisions, and are seeking out more sustainable options. As such, it is likely that the demand for EVs will continue to grow in the coming years, regardless of Ford’s decision to cancel its EV models.
In the short term, Ford’s decision may potentially give its competitors an opportunity to gain an advantage in the EV market. Companies such as Tesla, Volkswagen, and Nissan have already made significant investments in EV technology, and may be well-positioned to capitalize on the growing demand for eco-friendly vehicles. However, it is also possible that Ford’s decision may prompt other companies to re-evaluate their own EV strategies, and potentially lead to a more cautious approach to investing in the sector.
Overall, Ford’s decision to cancel its EV models and shift back to ICE and hybrid vehicles is a significant development in the automotive industry. While the reasons behind this decision are not entirely clear, it is likely that the company has taken a number of factors into account, including market demand, production costs, and regulatory considerations. As the industry continues to evolve, it will be interesting to see how Ford’s decision plays out, and what impact it may have on the growth of the EV market.
In conclusion, Ford’s announcement 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. The company’s decision to cancel its EV models and convert its electric truck-manufacturing factory to produce traditional vehicles is a significant departure from its previous commitment to electrification. While the reasons behind this decision are not entirely clear, it is likely that the company has taken a number of factors into account, including market demand, production costs, and regulatory considerations. As the industry continues to evolve, it will be interesting to see how Ford’s decision plays out, and what impact it may have on the growth of the EV market.
News Source: https://www.reuters.com/business/autos-transportation/fords-195-billion-ev-writedown-five-things-know-2025-12-16/
About the Author
