Ford cancels large electric vehicle production due to $19.5 billion losses
Kyiv • UNN
Ford is changing its strategy, abandoning large electric cars in favor of hybrids and gasoline models. This decision is driven by low demand, changes in regulatory norms by the Donald Trump administration, and will lead to financial losses for the company amounting to $19.5 billion.
American automaker Ford is radically changing its strategy: the company is abandoning the production of large electric cars in favor of hybrids and gasoline models. The decision is due to low demand and changes in regulatory norms by the Donald Trump administration, which will lead to financial losses for the company of $19.5 billion. This is stated in the BBC material, writes UNN.
Details
The commercial vehicle and SUV segment will undergo the biggest changes. In particular, Ford is canceling the production of the all-electric F-150 Lightning pickup, redesigning it as a hybrid, and stopping the development of a new electric van. Instead of large-scale electrification, the brand will focus on profitable trucks and compact affordable models.
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The company's CEO, Jim Farley, noted that business sustainability is becoming a priority.
The operating reality has changed, and we are reallocating capital to higher-return growth opportunities
The change of course comes against the backdrop of the Trump administration's cancellation of $7,500 subsidies and the weakening of environmental standards. Ford explains that the previous strategy has lost its economic sense.
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Ford's statement says that the economic justification for a significant focus on electric vehicle production, particularly large-scale models, "has disappeared due to lower-than-expected demand, high costs, and changes in regulatory bodies."
This is a change driven by customer needs, aimed at creating a stronger, more sustainable, and more profitable Ford
Farley called the new relaxed rules "a victory for common sense," noting that they "are consistent with customer demand." Similar processes are observed throughout the sector: General Motors has already announced $1.6 billion in losses due to abandoning ambitious electric car goals, and the European Union is currently discussing softening the ban on internal combustion engines after lobbying from Germany.