Ford Faces £15 Billion Writedown as Electric Vehicle Plans Scaled Back Under Shifting US Policy and Market Constraints

Ford has announced a substantial £15 billion writedown while unveiling a decisive pivot away from battery electric vehicles in response to shifting US policy under President Trump and softening demand. Several forthcoming electric vehicle projects will be scrapped, with the company confirming that the all electric F150 Lightning will cease production. Instead, Ford will introduce an extended range iteration utilising a petrol powered generator to recharge the battery, a model classified as an Erev hybrid. Additional next generation electric truck projects, including the T3, and planned electric commercial vans have also been shelved.

Management at the Dearborn based group enumerated the writedown as comprising £6.5 billion from abandoned electric vehicle concepts, £4.6 billion from the termination of a battery partnership with South Korean firm SK On, with the remainder attributed to program related expenses. This financial impact will be distributed over several years, beginning in the fourth quarter and continuing through to 2027.

These strategic adjustments mirror a broader industry trend as manufacturers recalibrate their investments in electric vehicles. The sector entered the decade with ambitious commitments to battery powered models, supported by federal incentives. However, the market outlook darkened as the US administration rolled back key regulatory supports and allowed the expiration of a consumer tax credit, which had been valued at £5,900 for over fifteen years. The result was a sharp 40 percent drop in electric vehicle sales in November, as well as a regulatory freeze on fuel economy penalties, leading to renewed commercial focus on petrol driven vehicles.

Production of the F150 Lightning, which began in 2022 amid considerable publicity and an initial surge in preorders, has failed to maintain anticipated sales momentum. Just over 25,500 units were sold through November this year, reflecting a ten percent downturn compared to the previous year. Ford had planned to position the T3 as a successor, intended for production at a new Tennessee site, but that facility will now prioritise petrol trucks from 2029 onwards.

Despite the retrenchment, Ford is publicly committing to a mixed future portfolio. The company projects that hybrids and extended range electric vehicles, alongside pure electrics, will make up half of its global vehicle offerings by the end of the decade, up from the current 17 percent. While some job cuts are anticipated at the Tennessee battery facility, Ford expects eventual employment growth as hybrid and petrol production expands.

The company’s future electric vehicle development will target lower cost models. A midsize electric truck, developed by a specialist team in California, is expected to launch at around £23,500 and will be produced at Ford’s Louisville plant, with a 2027 market debut planned. This represents a shift in focus to more broadly accessible electrics as premium battery powered vehicles lose their commercial appeal under the existing regulatory environment.