Ford announced that it expects to record approximately $19.5 billion in special charges, primarily related to rationalizing its U.S. EV-related assets, canceling planned large EV models (including scrapping the all-electric F-150 Lightning after the 2025 model year and other big EVs), and pivoting toward hybrids, extended-range EVs, gas-powered vehicles, and more affordable/smaller EVs.
- $8.5 billion: Asset write-downs and impairments for the Model e (EV) division. This includes devaluing or writing off manufacturing plants, equipment, tooling, and other investments tied to canceled or scaled-back large EV programs (e.g., factories retooling, idle capacity from reduced EV ambitions).
- Remaining ~$11 billion: Other special items, including contract cancellations with suppliers, restructuring costs (e.g., workforce redeployment or potential layoffs at battery plants), and additional expenses from delaying or abandoning planned EV product roadmaps. Part of this relates to broader strategic shifts, such as reallocating resources to hybrid/gas production lines.
The entire write-down is in the EV division, as they transition to hybrids. |
