Ford Motor(US:F) Hua Er Jie Jian Wen·2025-12-16 00:35Core Viewpoint - Ford Motor Company announced a significant strategic shift, recognizing the inability to achieve its electric vehicle ambitions in the short term, leading to a pre-tax charge of approximately $19.5 billion primarily related to its electric vehicle business [1] Group 1: Strategic Shift - Ford plans to pivot from a full electric vehicle strategy to focus on hybrid and plug-in hybrid vehicles, while also strengthening its traditional gasoline vehicle lineup [1][2] - The company will discontinue the production of the all-electric F-150 Lightning pickup truck and other electric models, retaining only a low-cost electric pickup planned for 2027 [2] - Ford's Model e electric vehicle division is projected to incur a loss of $5.1 billion in 2024 and $3.6 billion in the first three quarters of 2025, with a goal to achieve profitability in the electric vehicle business by 2029 [2] Group 2: Financial Implications - The $19.5 billion charge includes $12.5 billion to be recorded in Q4 for streamlining electric vehicle assets, with $3 billion allocated for terminating a battery joint venture with SK Group [2] - Despite the substantial charge, Ford raised its full-year financial guidance, expecting adjusted EBIT of $7 billion, up from a previous forecast of $6 billion to $6.5 billion [6] Group 3: Market and Regulatory Environment - The shift reflects pressures from changing regulatory environments and weak market demand, with consumers expressing concerns over high prices, range anxiety, and insufficient charging infrastructure [1][2] - The company acknowledges a clearer understanding of the U.S. market, opting to reallocate capital from electric vehicles to more profitable models [1] Group 4: Industry Trends - Ford's strategic change signals a broader trend in the U.S. automotive industry, with General Motors also abandoning its plan for a fully electric lineup by 2035 and facing significant write-downs on electric vehicle assets [4] - Other automakers are repurposing electric vehicle battery factories for fixed energy storage solutions, indicating a shift in focus towards more profitable markets [5]