Ford Motor Company Restructures EV Strategy Amid US$1.95 Billion Loss

Significant Shift in Business Strategy

Ford Motor Company has announced a substantial US$1.95 billion loss related to its electric vehicle (EV) investments, marking a significant shift in the company's business strategy. The Detroit-based automaker is canceling several EV projects and redirecting its focus towards hybrid and gasoline-powered vehicles in response to changing market dynamics ¹

Project Cancellations and Restructuring

The US$1.95 billion loss includes US$8.5 billion from canceled EV projects, such as the next-generation electric pickup truck codenamed T3 and a commercial electric van. Additionally, Ford has recorded a US$6 billion loss from its battery production joint venture with SK On, which has been terminated. The remaining US$5 billion is attributed to additional program costs ²

New Strategic Focus

Ford is now concentrating on developing more affordable EV models through a dedicated team in California. The company plans to launch a US$30,000 pickup truck in 2027, targeting the mid-price segment to expand its EV customer base. The Tennessee factory, previously planned for EV production, will now manufacture gasoline-powered trucks.

Market Context and Future Outlook

This strategic shift comes amid slowing EV demand and changing market preferences in the automotive industry. Ford's decision reflects a broader trend among automakers reassessing their EV strategies in response to current market conditions. The company's new approach aims to balance its EV ambitions with more immediate market demands.