Ford Motor Company is significantly altering its electric vehicle (EV) strategy in response to lower-than-anticipated consumer adoption rates and a challenging market. The company is canceling several planned EV models, ending its BlueOval SK battery joint venture, and taking substantial impairment charges. Ford will pivot its capital towards expanding its hybrid offerings, developing a new low-cost EV platform for smaller vehicles, and launching a new battery energy storage business.
Key Details
- Financial Impact: The company expects to record total pre-tax charges and expenses of approximately $19.5 billion, primarily in Q4 2025 and 2026. This includes an estimated $5.5 billion in cash expenditures, with the majority occurring in 2026.
- EV Program Changes: Ford is canceling three previously planned EVs (a full-size pickup and two commercial vans) and ending production of the current generation F-150 Lightning.
- Joint Venture Dissolution: Ford is exiting its BlueOval SK, LLC (BOSK) joint venture with SK On. A Ford subsidiary will acquire the two BOSK battery plants in Kentucky, which will be repurposed for a new battery energy storage business.
- Updated Guidance: Despite the restructuring charges, Ford raised its full-year 2025 adjusted EBIT guidance to approximately $7 billion, citing underlying business strength.