Ford plans to book about $19.5bn in special items as it reshapes its EV strategy, pulling back from some larger battery models and shifting investment towards hybrids, and extended-range vehicles.
See also: Ford strategy briefing: Electrification in a cooling market
The charges, tied to a series of changes under its Ford+ plan, will mostly fall in the fourth quarter of 2025, with the remainder recognised in 2026 and 2027.
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The company expects around $5.5bn of the total to be cash outflows, largely in 2026, with the balance in 2027.
The US manufacturer said the moves are intended to align capital spending more closely with customer demand and higher-return opportunities, while setting out a route to profitability for its Model e EV unit by 2029, with yearly improvements anticipated from 2026.
Ford president and CEO Jim Farley said: “This is a customer-driven shift to create a stronger, more resilient and more profitable Ford.
“The operating reality has changed, and we are redeploying capital into higher-return growth opportunities: Ford Pro, our market-leading trucks and vans, hybrids and high-margin opportunities like our new battery energy storage business.”
Ford added that the actions should also boost earnings over time in its Ford Blue and Ford Pro businesses, with early gains expected in 2026.
As part of the overhaul, Ford will abandon plans to build certain larger fully electric vehicles after concluding that the economics no longer stack up, citing weaker-than-forecast demand, high costs and regulatory shifts.
The group said its revised approach “prioritises affordability, choice and profits”.
The company now intends to broaden powertrain options, including “a range of hybrids and extended-range electric propulsion”, while concentrating future pure EV development on its new, flexible Universal EV Platform designed for smaller, more affordable models.
Ford and its subsidiaries plan to hire thousands of workers across the US to support the changes.
By 2030, the company expects about half of its global sales volume to consist of hybrids, extended-range EVs and fully electric vehicles, up from an estimated 17% in 2025.
In North America, Ford will centre its EV efforts on the Universal EV Platform, which it describes as low-cost and flexible.
The first vehicle based on this architecture will be a “fully connected” midsize pickup truck, scheduled for production at the Louisville Assembly Plant from 2027.
The company is revising its strategy for larger trucks and SUVs to reflect demand for capability, towing and range, including the addition of extended-range electric variants.
Under this plan, the next-generation F-150 Lightning will move to an extended-range electric vehicle (EREV) architecture and will be built at the Rouge Electric Vehicle Center in Dearborn, Michigan.
Production of the current F-150 Lightning has ended, with employees being reassigned to the Dearborn Truck Plant to man a third crew producing petrol and hybrid F-150s, following disruption linked to the Novelis fires.
Ford said it has dropped plans for a new electric commercial van for Europe, though it will continue to offer a full range of electrified vans in that region.
In North America, the company will replace a proposed electric commercial van with a new, lower-cost commercial model available with petrol and hybrid powertrains. This van will be built at the Ohio Assembly Plant.
These steps complement Ford’s previously announced plan to introduce five new affordable vehicles by the end of the decade, four of which will be produced in the US.
Ford also unveiled plans to create a new business, including sales and service operations, to address what it called “large demand” for battery energy storage from data centres and infrastructure to support the electricity grid.
The company will convert existing US battery manufacturing capacity in Glendale, Kentucky, to supply the battery energy storage systems (BESS) market.
Alongside the strategic reset and associated charges, Ford raised its 2025 guidance for adjusted earnings before interest and taxes to about $7bn, up from an earlier range of $6bn to $6.5bn.
Last week, SK On ended its US joint venture with Ford Motor as they refocus strategies in a cooling electric vehicle market.
