Ford Motor Company announced a significant $19.5 billion charge as part of its strategy to restructure and shift focus away from electric vehicles (EVs) toward more profitable opportunities, such as hybrids and battery energy storage systems (BESS). This announcement was made in the context of decreasing support for EVs and anticipated slowdowns in the U.S. EV market. The charges are expected to impact Q4 results and will largely occur during that quarter, with an additional $5.5 billion charged through 2027.
The automaker plans to pivot by increasing its emphasis on hybrid and extended-range vehicles, projecting that by 2030, about 50% of its global sales will consist of hybrids and EVs, up from 17% in 2025. Ford’s Model e division is aiming for profitability by 2029, following $5 billion in losses reported in 2024. Additionally, Ford is repurposing its EV battery factory in Kentucky to support BESS, planning to invest roughly $2 billion over the next two years in this area.
