Ford Takes $19.5 Billion Hit as Shift to Hybrid EVs Accelerates

Ford Takes $19.5 Billion Charge Amid Shift in Electric Vehicle Strategy Ford Motor Company announced this week that it will cease production of the original electric F-150 Lightning and shift some of its workforce to producing a hybrid version of the pickup. The move comes as the company takes a $19.5 billion charge in 2026, citing a "customer-driven" shift in its electric vehicle strategy. This decision marks a significant departure from the company's previous stance on electric vehicles, particularly in light of comments made by CEO Jim Farley just months ago. In September, Farley predicted that the end of the 7,500 consumer incentive would be a game-changer, potentially halving the U.S. electric vehicle market. He estimated that EV sales could plummet from 10-12% to 5% of the U.S. vehicle market. Speaking to CNBC on Monday, Farley claimed that the EV market had indeed shrunk to around 5% of the U.S. vehicle market. The immediate impact of this shift is evident in Ford's decision to discontinue production of the F-150 Lightning. The company will instead focus on producing a hybrid version of the pickup, which will have a gas-powered generator called an EREV or an extended range electric vehicle. This move is expected to result in significant job losses and a substantial financial charge for the company. In the background, the U.S. electric vehicle market has been facing challenges, including the potential expiration of the 7,500 consumer incentive. This incentive has been a crucial factor in driving consumer adoption of electric vehicles. However, with the market shrinking, companies like Ford are being forced to reassess their strategies and adapt to changing consumer preferences. As Ford navigates this new landscape, investors and analysts will be closely watching the company's financial performance. The $19.5 billion charge in 2026 will likely have a significant impact on the company's bottom line. Meanwhile, the shift in Ford's electric vehicle strategy raises questions about the future of the U.S. electric vehicle market and the role of government incentives in driving consumer adoption.