**Ford Shifts Focus from Electric Vehicles Amid Policy Changes**
Ford Motor Company has made a significant decision to discontinue several electric vehicle (EV) models, marking a notable shift in strategy influenced by the policies of the Trump administration. On Monday, the Michigan-based automaker announced a $19.5 billion writedown as it phases out its F-150 Lightning in its electric form, opting instead to develop an extended-range electric vehicle (EREV), a hybrid model.
In addition to scrapping the F-150 Lightning, Ford is also halting plans for a next-generation electric truck and electric commercial vans, effectively ending its second-generation EV lineup. The company has stated that it will now concentrate on gas and electric hybrids, projecting the creation of thousands of jobs as a result of this strategic pivot. However, there will be some layoffs at a jointly owned battery plant in Tennessee in the short term.
Andrew Frick, head of Ford’s gas and electric vehicle operations, emphasized the company’s new direction, stating, “Rather than spending billions more on large EVs that now have no path to profitability, we are allocating that money into higher-returning areas.”
The $19.5 billion writedown consists of two main components: $8.5 billion in losses from the cancellation of EV models and an additional $6 billion related to the dissolution of the Tennessee battery plant in partnership with South Korea’s SK On. Furthermore, Ford anticipates incurring another $5 billion in program-related expenses. The company plans to distribute this nearly $20 billion writedown primarily in the fourth quarter and extending into 2027.
This strategic shift comes amid a significant decline in EV sales in the U.S., with a reported 40% drop in November alone, following the expiration of a $7,500 consumer tax credit for EV purchases. The tax credit had been instrumental in boosting demand for electric vehicles over the past 15 years. Additionally, the Trump administration’s easing of tailpipe emissions regulations is likely to encourage manufacturers to focus more on fossil fuel-powered vehicles.
As Ford navigates this transition, the implications for the automotive industry and the future of electric vehicles remain to be seen.
**FAQ**
*Why is Ford discontinuing its electric vehicle models?*
Ford is discontinuing its electric vehicle models due to a lack of profitability and is shifting its focus to gas and electric hybrids, which they believe will yield higher returns.