Ford’s Significant EV Strategy Shift
Ford Motor Company is incurring a nearly $20 billion special charge to realign its electric vehicle (EV) strategy. This includes discontinuing the F-150 Lightning, which marks a major shift just four years after its production began. The company aims to refocus on more profitable vehicle types, including hybrids and gas-powered models.
Looking ahead, Ford plans to introduce an affordable $30,000 midsize EV pickup by 2027, which it expects to be profitable early on. Despite criticism, Ford CEO Jim Farley emphasized the company’s commitment to EVs, stating, “We’re not going backward on EVs,” and that they are learning from their early investments in the market.
In 2024, Ford’s Model-e division suffered losses exceeding $5 billion, prompting the need for this strategic shift. The revised focus aims to capitalize on more viable market segments, with expectations of narrowing losses and achieving profitability by 2029.
