Ford Scales Back Electric Vehicle Plans Amid Weak Demand and Regulatory Shifts
Ford is reducing its ambitions to build large electric vehicles, instead focusing on profitable hybrids, gas-powered models, and smaller electric vehicles due to weak demand and regulatory changes introduced under President Trump. The company expects a $19.5 billion hit to profits (approximately £14.6 billion) resulting from this strategic shift.
The F-150 Lightning electric pickup will be redesigned as a hybrid featuring a gas-powered generator, with the purely electric version no longer planned for production. Additionally, Ford has decided to cancel its new electric delivery van project to prioritize gas and hybrid models.
This move follows General Motors' similar announcement in October, where GM reported a $1.6 billion charge related to scaling back EV ambitions. In the United States, electric vehicle adoption lags behind China, the UK, and Europe, attributed in part to weak government support.
Policy changes under the Trump administration have rolled back EV incentives and regulations, including ending the $7,500 federal tax credit for EV purchases in September and loosening fuel-economy standards. Standards proposed during the Biden administration were projected to prevent approximately 700 million metric tons of CO2 emissions by 2050.
Ford CEO Jim Farley stated that the shift is customer-driven and aims to redeploy capital into higher-return opportunities such as trucks, vans, hybrids, and energy storage.
