Prime Highlights

• Ford is reshaping its electric vehicle strategy to better match customer demand, with a stronger focus on hybrids, extended-range EVs, and affordable electric models.
• The company remains confident in its long-term growth, raising its 2025 adjusted earnings outlook and outlining a clearer path to profitability.

Key Facts

• Ford expects to record about $19.5 billion in special charges, mainly in the fourth quarter, linked to EV-related restructuring and asset write-downs.
• The automaker has increased its 2025 adjusted EBIT forecast to around $7 billion, reflecting improved confidence in its core business performance.

Background:

Ford Motor Company has announced a major restructuring of its business priorities as it recalibrates its electric vehicle strategy to better reflect current market demand. The automaker said it expects to record around $19.5 billion in special charges, most of which will be booked in the fourth quarter, linked largely to its pullback from certain all-electric vehicle investments.

The company clarified that these charges will affect its reported net results but will not impact adjusted earnings. Along with the announcement, Ford increased its 2025 adjusted EBIT forecast to around $7 billion, showing stronger confidence in its core business after cutting expectations earlier this year.

Much of the charge includes write-downs tied to electric vehicle assets, reflecting changes in product and investment plans. Ford also said it will take about $5.5 billion in cash charges through 2027, with most of the cost coming next year as part of the restructuring.

As part of the new strategy, Ford is focusing more on hybrid and extended-range electric vehicles instead of only fully electric models.

Ford also confirmed that the F-150 Lightning will transition to an extended-range electric format that combines an electric powertrain with a gas-powered generator. In addition, battery plants in Kentucky and Michigan will be repurposed to support a new stationary energy storage business, with production expected to begin by 2027.

The company believes these changes will put its Model e electric vehicle unit on a path to profitability by 2029, with steady improvements expected from 2026. By 2030, Ford projects that about half of its global vehicle sales will come from hybrids, EREVs, and fully electric vehicles.

Investors welcomed the announcement, and Ford’s shares moved higher in after-hours trading. The move shows Ford is adjusting its investments to match customer demand and improve long-term profits as the auto market changes.