Ford Restructures EV Strategy, Takes Massive $19.5B Charge While Scaling Back Production Plans

Ford Motor Co. is making a decisive shift in its electric vehicle strategy, announcing plans to curtail production of select large-format electric models as the automaker grapples with challenging market conditions. The move comes amid weakening demand for certain EVs, elevated manufacturing costs, and shifting regulatory landscapes that have eroded profit margins in the segment.

Financial Impact and Timeline

The restructuring will result in approximately $19.5 billion in special charges, concentrated primarily in the fourth quarter of 2025, with additional adjustments extending into 2026 and 2027. This substantial financial commitment reflects Ford’s commitment to realigning its capital allocation and operational priorities for long-term sustainability.

Reorienting the EV Portfolio

Rather than abandoning electrification entirely, Ford is sharpening its Ford+ strategic plan with renewed focus on three pillars: affordability, consumer flexibility, and profitability. The company will expand its hybrid and extended-range electric offerings while concentrating pure EV development on the Universal EV Platform—a next-generation architecture engineered specifically for smaller, more cost-competitive vehicles.

A next-generation F-150 Lightning featuring extended-range electric technology will anchor the lineup, while a new midsize pickup truck built on the Universal EV Platform is slated for 2027 introduction. These vehicles represent Ford’s bet on more accessible electric options that can compete effectively in mainstream markets.

Manufacturing Transformation

Ford plans to repurpose production facilities in Tennessee and Ohio to bolster truck and van manufacturing, directly supporting thousands of new U.S. job creation across the country. Beyond traditional automotive production, the company is venturing into battery energy storage systems, converting its Kentucky manufacturing site to produce advanced storage solutions for data centers and grid operators.

This new business segment targets a deployment capacity of at least 20 GWh annually by late 2027, opening an additional revenue stream beyond traditional vehicle sales.

Broader Sustainability Vision

These operational adjustments support Ford’s overarching carbon neutrality objective, aimed at achieving net-zero emissions across its entire vehicle portfolio, manufacturing operations, and supply chain network by 2050. The strategic reorientation positions Ford to compete in an evolving automotive landscape while maintaining environmental commitments.