Ford scales back EV plans as demand tanks

Ford has announced a major reset of its electric vehicle strategy, stepping away from plans to build large EVs as weaker demand and changing US regulations undermine their commercial appeal.

The automaker said it will redirect investment toward hybrids, petrol-powered vehicles and smaller, more affordable electric models, a move it expects will reduce profits by about US$19.5 billion.

The company said the rationale for focusing heavily on large electric vehicles has diminished, citing high production costs, slower-than-expected consumer uptake and policy changes introduced under President Donald Trump, including looser fuel economy standards. Chief executive Jim Farley described the shift as customer-led, saying Ford is reallocating capital to areas offering stronger returns, such as trucks, vans, hybrids and energy storage.

As part of the overhaul, Ford will abandon plans for a fully electric F-150 pickup, instead redesigning the Lightning as a hybrid with a petrol generator. A planned electric van has also been scrapped in favour of conventional and hybrid models.

Ford’s decision mirrors a broader industry retreat from aggressive EV targets, following similar moves by General Motors. Analysts say the rollback reflects softer US EV demand, worsened by the end of generous tax credits and reduced regulatory pressure, even as global competitors continue to push ahead with electrification.

Image credit: Dan Dennis