Reviewed by Gotrade Internal Analyst
Jakarta, Gotrade News - Ford Motor Company has announced a massive shake-up in its business strategy, absorbing a special charge of $19.5 billion. This drastic move comes as the company decides to scale back its aggressive bets on pure electric vehicles.
Key Takeaways
- Ford is booking a $19.5 billion charge due to restructuring and shifting focus away from pure EVs.
- Production of the F-150 Lightning is paused to prioritize hybrids and EREVs.
- Surprisingly, the 2025 operating profit guidance has been raised to around $7 billion.
Most of this massive cost will be recorded in this year's fourth-quarter books. However, according to a CNBC report, Ford Motor Company is actually raising its 2025 operating profit projection to $7 billion.
Market Reality Shifts Investment Direction
Ford CEO Jim Farley emphasized to CNBC that this decision is purely based on current customer demand. Sales for high-end electric cars priced above $50,000 have proven to be very sluggish in the market.
External policies also played a huge role, such as the expiration of the $7,500 federal tax credit last September. CNN noted that Ford's EV sales had jumped 30% in the third quarter before that incentive was scrapped.
New Focus on Hybrids and Energy
Ford is now shifting its development focus to hybrids and more affordable electric platforms. CNN reports that production of the original F-150 Lightning model has officially been halted this month.
Beyond automotive, battery plant capacity will be repurposed for energy storage businesses serving data centers. In his statement to CNBC, Andrew Frick mentioned that this energy market has very strong demand potential.
Reference:
- CNBC, Ford to record $19.5 billion in special charges related to EV pullback. Accessed on December 16, 2025
- CNN, Ford takes $19.5 billion hit as it pulls back on electric vehicle plans, halts F-150 Lightning production. . Accessed on December 16, 2025
- Featured Image: Shutterstock
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