Well, folks, it looks like Ford Motor Co. just slammed the brakes on its electric vehicle (EV) dreams with a jaw-dropping $19.5 billion write-down.
Ford announced on Monday a strategic pivot away from its struggling EV division, racking up a historic impairment charge and refocusing on gas-powered vehicles, hybrids, and plug-in hybrids to stem the bleeding, Breitbart reported.
This isn’t just a minor detour; it’s the biggest financial hit ever taken by a Detroit automaker, reflecting a staggering $13 billion in losses for Ford’s EV segment since 2023.
Let’s be real—Ford’s all-in bet on EVs hasn’t panned out, and the company is now scrambling to redirect capital to more profitable ventures like traditional engines and hybrid options.
The decision to halt production of the all-electric F-150 Lightning pickup truck—a flagship in their EV lineup—speaks volumes about the disconnect between corporate green agendas and what everyday Americans actually want.
Instead, Ford is doubling down on an extended-range version of the F-150, hoping to bridge the gap for consumers who find pure EVs too impractical or pricey.
Currently, only 17% of Ford’s global vehicle volume comes from hybrids, extended-range models, and EVs, a clear sign that the market isn’t ready to ditch gas anytime soon.
Yet, Ford projects that by 2030, roughly half of its global sales will shift to these reduced-emission options, a cautious nod to environmental concerns without ignoring consumer hesitancy.
This pivot isn’t just about numbers; it’s an admission that hybrids and plug-in models are more affordable and realistic for folks who can’t—or won’t—shell out for a full EV.
Ford CEO Jim Farley, once a vocal cheerleader for EVs, is now singing a different tune, citing the need to stop throwing money at unprofitable electric projects.
“Instead of plowing billions into the future knowing these large EVs will never make money, we are pivoting,” Farley said, per Ford’s official statement, signaling a pragmatic retreat from EV idealism.
Call it a reality check—his words reveal a hard truth that the U.S. market isn’t bowing to the progressive push for an all-electric future, and Ford can’t afford to ignore that.
Farley also touted EV manufacturing simplicity as a cost-saver, saying, “Half the fixtures, half the work stations, half the welds, 20% less fasteners,” according to Ford’s release.
While that sounds slick on paper, it’s tough to buy the hype when the balance sheet shows billions in red ink—simpler doesn’t mean successful if buyers aren’t biting.
As Ford commits to a $30,000 EV pickup by 2027 to anchor a low-cost lineup and slashes distribution and advertising costs to stay competitive, one can’t help but wonder if this is too little, too late for a company burned by overzealous green ambitions.
