Ford's Strategic Shift: From Electric Ambitions to Hybrid Focus

Ford Motor announced a $19.5 billion charge related to dropping electric vehicle (EV) investments. The company will halt several future EV models and focus instead on hybrid vehicles and expanding conventional gas models to suit consumer preferences. Ford anticipates EV profitability by 2029.

Ford Motor Co. made waves on Monday by announcing a massive $19.5 billion write-down on its electric vehicle (EV) investments, signaling a significant strategic pivot. The charge reflects the auto giant's decision to cancel several next-gen EV models, including a planned pickup truck in Tennessee.

Observers say Ford is recalibrating its approach by re-emphasizing conventional gas models and hybrids, seeking to align more closely with market preferences. The reorientation follows mounting financial losses in its EV operations, with Ford executives projecting a shift to profitability by 2029.

Meanwhile, Ford stays committed to battery innovation, planning new ventures in Kentucky and Michigan to produce batteries for energy storage, driven by surging demand from data centers linked to AI growth. An investment of $2 billion over two years will fuel this expansion.

(With inputs from agencies.)