Ford Faces $19.5 Billion Loss Amid E.V. Strategy Shift

Ford Motor announced on December 15, 2025, that it will incur a $19.5 billion loss due to a strategic shift away from electric vehicles, as reported by the New York Times. The company plans to reduce its production of electric vehicles and instead focus on hybrids that utilize both gasoline engines and batteries.

This decision reflects Ford's acknowledgment that it overestimated the demand for battery-powered vehicles and underestimated the durability of gasoline and diesel-powered vehicles. Ford's revised strategy comes amidst a broader trend in the U.S. auto industry, with other major automakers like General Motors and Stellantis also shifting their focus back towards combustion engine vehicles and hybrids.

The change is partially attributed to recent reversals in government policies under President Trump, who has reduced incentives for electric vehicles and weakened fuel economy standards, diminishing the motivation for automakers to produce electric cars.

Ford indicated that this strategy will affect multiple factories across several states and is expected to create several thousand jobs. A planned factory in Tennessee aimed at producing an electric pickup will now produce a gasoline model.

Additionally, the company has canceled its plans for an electric commercial van, opting instead to manufacture new gasoline and hybrid models in Ohio. The F-150 Lightning, previously a pure electric vehicle, will incorporate a gasoline-fueled generator to recharge its battery when necessary, and production of this model has been suspended since October 2025.