Ford Is Rolling Back Some of Its EV Plans. Here's What You Need to Know

Ford's (E) electric vehicle strategy is changing gear.

The automaker announced a major shift in its EV plans late Monday, with thecompany expecting to take on about $19.5 billion in one-time charges toaccount for the costs of a restructuring plan that will see the automaker focusmore on hybrid and plug-in vehicles, while pulling away from pure EVs. 11l Fordsaid it plans to recognize most of the $19.5 billion in charges during the fourthquarter, with about $5.5 billion in cash effects to be paid through 2027.

"This is a customer-driven shift to create a stronger, more resilient and moreprofitable Ford," Ford CEO Jim Farley said in a statement. "The operating realityhas changed, and we are redeploying capital into higher-return growthopportunities."

The next generation of Ford's F-150 Lightning electric truck will now be anextended-range EV rather than a fully electric vehicle. Ford said its plans to startintroducing smaller, more efficient and affordable EVs remain on track for 2027.

Ford said its electric vehicle unit should be profitable by 2029 after makingthese changes, and that some of its battery-producing plants will shift tomaking stationary batteries for homes, businesses, and data centers.

General Motors (GM) and other automakers have made changes to their EVplans as well in recent months, anticipating a drop in demand after a $7,500 EVtax credit expired at the end of September. Automakers are also facing lesspressure to shift to more sustainable vehicles, as the Trump administration hasloosened emissions requirements.

Ford said it expects that by 2030, about half of its vehicle lineup will be made upof a combination of hybrids, EVs, or extended-range EVs, compared to about17% of its lineup today.

Ford shares were little changed in recent trading. They have gained nearly 40%since the start of the year.