ExclusiveFord Announces $19.5 Billion EV Writedown

Ford Motor said Monday it expected to take about $19.5 billion in charges, mainly tied to its electric vehicle business. The write-down includes about $8.5 billion tied to costs associated with killing several future EVs, including a planned large pickup truck that was to be built in Tennessee. Ford is also writing down $6 billion from a joint venture battery operation with South Korea's SKON. The company announced the end of the partnership last week. Ford described another $5 billion as additional program-related expenses. Of the total charges, only about $5.5 billion will impact cash, which Ford said would be incurred next year and into 2027. Ford's announcement is a major setback for the EV push as the automaker retrenches in the face of sinking EV demand. Ford said hybrid cars, which use gas engines along with batteries to improve power and fuel efficiency, will drive growth in the coming years. The company expects its global mix of hybrids, extended-range EVs and pure EVs to reach 50% of vehicle sales by 2030, from 17% today.