Core Viewpoint - Ford Motor is taking a significant $19.5 billion writedown and discontinuing several electric vehicle (EV) models, reflecting the auto industry's retreat from battery-powered vehicles due to changing policies and declining demand for EVs [1][5]. Group 1: Company Actions - Ford will cease production of the F-150 Lightning in its electric form, shifting to an extended-range electric model (EREV) that utilizes a gas-powered generator [2]. - The company is also canceling the next-generation electric truck, known as the 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 [4]. - Ford has raised its 2025 guidance for adjusted earnings before taxes and interest to approximately $7 billion, up from a previous range of $6 billion to $6.5 billion [4]. Group 3: Market Context - The shift in Ford's strategy reflects a broader trend in the auto industry, as demand for battery-powered models has decreased significantly, particularly after the expiration of a $7,500 consumer tax credit [5][6]. - U.S. sales of electric vehicles fell by about 40% in November, indicating a substantial decline in consumer interest [6]. - The Trump administration's policies have reduced federal support for EVs and eased emissions regulations, further impacting the market outlook for electric vehicles [5]. Group 4: Future Plans - Ford is now focusing on developing more affordable EV models, with the first model from a specialized team in California expected to be priced around $30,000 and available in 2027 [10]. - The production of the new gas-powered trucks will begin in 2029 at a new facility in Tennessee, replacing the previously planned EV pickup [9].

Core Viewpoint - Ford is taking a significant $19.5 billion writedown and discontinuing several electric vehicle (EV) models, reflecting the auto industry's retreat from battery-powered vehicles due to changing policies and declining demand for EVs [1][5]. 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, a hybrid called Erev [2]. - 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, expecting its global mix of hybrids, extended-range EVs, and pure EVs to reach 50% by 2030, up from 17% today [3]. Group 2: Financial Implications - The $19.5 billion writedown will be spread out, primarily occurring in the fourth quarter and continuing 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" [4]. - Sales of the F-150 Lightning have decreased by 10% year-over-year, with only 25,583 units sold through November [8]. Group 3: Market Context - US sales of electric vehicles fell approximately 40% in November, following the expiration of a $7,500 consumer tax credit, which had been in place for over 15 years [6]. - The shift in Ford's strategy reflects a broader trend in the auto industry, as companies reassess their investments in EVs amid waning demand and changing regulatory environments [5][7]. Group 4: Future Plans - Ford's future EV lineup will focus on more affordable models, with the first model from a specialized team in California expected to be priced around $30,000 and available in 2027 [9].

Core 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].