Ford Motor(US:F) New York Post·2025-12-15 21:26Core Viewpoint - Ford Motor is taking a significant $19.5 billion writedown and discontinuing several electric vehicle models due to declining EV demand and changes in government policies [1][6]. Group 1: Company Actions - Ford will cease production of the F-150 Lightning in its electric form and will instead focus on an extended-range electric model, transitioning to a hybrid vehicle known as EREV [2][5]. - The company is also canceling the next-generation electric truck, T3, and planned electric commercial vans [2]. - Ford plans to pivot towards gas and hybrid models, with an expectation that hybrids, extended-range EVs, and pure EVs will make up 50% of its global mix by 2030, up from 17% currently [3]. Group 2: Financial Implications - The $19.5 billion writedown will be spread out primarily in the fourth quarter and continue through 2027, with $8.5 billion related to canceled EV models, $6 billion tied to a dissolved battery joint venture with SK On, and $5 billion for program-related expenses [5]. - Ford has raised its 2025 guidance for adjusted earnings before taxes and interest to approximately $7 billion, an increase from the previous range of $6 billion to $6.5 billion [5]. Group 3: Market Context - The auto industry is responding to a significant drop in demand for battery-powered vehicles, with U.S. sales of electric vehicles falling about 40% in November following the expiration of a consumer tax credit [6][7]. - The shift in policy under the Trump administration has reduced federal support for EVs and eased emissions regulations, prompting automakers to focus more on gas-powered vehicles [6][7]. Group 4: Future Strategy - Ford is effectively discontinuing its entire second-generation EV lineup and will focus on developing more affordable EV models, with the first model expected to be priced around $30,000 and available in 2027 [11].