Ford to take $19.5B charge on electric vehicle strategy pivot

Core Insights - Ford is re-evaluating its electric vehicle (EV) strategy, acknowledging that its previous approach was not successful, leading to a multi-billion dollar charge [1][2] Financial Impact - The company will incur a charge of $19.5 billion, primarily in 2025, with additional amounts in 2026 and 2027, to account for EV asset impairment [2][3] Strategic Shift - Ford plans to shift production in North America, moving away from large all-electric pickup trucks to potentially producing extended-range EVs and hybrids [3][4] - The company is developing a new model called the unboxed EV (UEV), expected to launch by the end of 2027, which will focus on lower price points and smaller sizes [4][5] Market Adaptation - Ford's sales of hybrids have increased by 19.4% this year, indicating a successful pivot towards hybrid models, which now represent a significant portion of their sales [6] - The company is raising its 2025 EBIT guidance to $7 billion, up from a previous estimate of $6 to $6.5 billion, reflecting improved performance [6] Industry Trends - The electric vehicle market is developing slower than anticipated, prompting Ford to adapt its strategy towards more hybrids and smaller or extended-range EVs, particularly in the pickup truck segment [7][8]