Matt Miller, Host of Bloomberg ‘Open Interest’ breaks down the latest from Ford as the company moves forward with a sweeping overhaul of its EV business.
Ford Motor Co. will take $19.5 billion in charges tied to a sweeping overhaul of its electric vehicle business after struggling for years to make it profitable.
The majority of the charges will come in the fourth quarter, Ford said Monday in a statement. As part of the strategic shift, the automaker is canceling a planned electric F-Series truck, shifting production toward gas and hybrid vehicles and repurposing an EV battery plant.
Ford will also convert its signature electric F-150 Lightning pickup into an extended-range hybrid vehicle.
The magnitude of asset impairments and write-downs is a testament both to the degree of difficulty Ford has had trying to profitably build and sell EVs, and the extent to which US President Donald Trump’s policy changes will only exacerbate those challenges.
In taking the charges, Ford is acknowledging it built far too much battery production capacity and was going down a dead-end with large EVs that were destined to lose more money.
The moves will make Ford’s EV operations profitable by 2029, Andrew Frick, head of the unit, told reporters in a briefing. The division lost $5.1 billion last year and the company expects losses could be worse this year.
“It didn’t make sense to keep plowing billions into products that we knew would not make money,” Jim Farley, Ford’s chief executive officer, said in an interview on Bloomberg TV. “We had to make this choice.”
The automaker boosted its 2025 guidance to $7 billion before interest and taxes, up from a prior estimate of $6 billion to $6.5 billion. Farley attributed the increase to the progress Ford has made in lowering costs and its move “to more profitable vehicles.”
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