Ford Scraps F-150 Lightning Electric Pickup, Takes $19.5B Loss in Major EV Retreat

Ford Motor Company delivered a stunning blow to the electric vehicle industry Monday, announcing it will discontinue production of the fully electric F-150 Lightning pickup truck and absorb a massive $19.5 billion impairment charge as it abandons key EV projects. The Detroit automaker's dramatic pivot away from electrification represents the most significant retreat yet by a major U.S. automaker from battery-powered vehicles, coming amid mounting financial losses and weakening consumer demand for EVs. "When the market really changed over the last couple of months, that was really the impetus for us to make the call," Ford CEO Jim Farley told Reuters in an interview. The F-150 Lightning, which entered production in 2022 amid considerable excitement as the electric version of America's bestselling vehicle, will be replaced by an extended-range electric model (EREV) that uses a gas-powered generator to recharge the battery. Ford is also scrapping a next-generation electric truck codenamed the T3 and planned electric commercial vans. The massive writedown will be distributed across multiple quarters, with the bulk hitting the company's fourth-quarter results. The charge breaks down into approximately $8.5 billion related to canceled EV models, around $6 billion tied to dissolving a battery joint venture with South Korea's SK On, and $5 billion in program-related expenses. Ford has lost $13 billion on EVs since 2023, and the company said it expects the $19.5 billion hit largely in the fourth quarter due to the EV business struggles. The automaker is implementing significant manufacturing changes as part of its strategic shift. Ford's Tennessee Electric Vehicle Center, part of the BlueOval City campus that was once envisioned as the future of Ford's EVs and batteries, is being renamed the Tennessee Truck Plant and will produce new affordable gas-powered trucks instead. The company's Ohio Assembly Plant will produce new gas and hybrid vans. "The American consumer is speaking clearly and they want the benefits of electrification like instant torque and mobile power," said Andrew Frick, president of Ford Blue and Ford Model E, the company's commercial and electric divisions. "But they also demand affordability." Ford said it will now focus heavily on gas and hybrid models, projecting it will eventually hire thousands of workers as a result of the pivot, though there will be some layoffs at a jointly owned Tennessee battery plant in the near term. The company described the shift as "customer-driven" to create a stronger, more profitable business model. Battery plants once intended to supply Ford trucks will now be sending batteries to bolster the electric grid instead. Ford's retreat comes as the incoming Trump administration signals reduced support for electric vehicles, creating additional headwinds for the EV market. The move reflects broader industry challenges as automakers grapple with slower-than-expected EV adoption rates and intense price competition in the electric vehicle segment. The decision marks a significant departure from Ford's previous ambitious electrification plans, under which the company had poured billions of dollars into electric vehicle development alongside most of its industry peers. The F-150 Lightning was positioned as a flagship model that would demonstrate Ford's commitment to an electric future. Ford's pivot represents a broader trend in the automotive industry as manufacturers reassess their EV strategies amid changing market conditions and policy uncertainties. The company's focus will now shift to developing smaller, more affordable electric vehicles while maintaining its traditional strengths in gas-powered and hybrid vehicles.