Ford retreats from large electric vehicle production, takes $19.5 billion financial hit amid weak demand and policy shifts

Ford Motor Company is dramatically scaling back its electric vehicle ambitions, announcing a massive $19.5 billion financial writedown as the automaker pivots away from large EVs in response to sluggish consumer demand and shifting regulatory landscapes under the Trump administration.

The Detroit-based automotive giant’s strategic retreat represents a significant setback for the electric vehicle transition in one of the world’s largest car markets. Ford’s decision to reduce its EV manufacturing plans comes as the company grapples with disappointing sales figures for its electric trucks and SUVs, which have failed to meet initial market projections despite substantial investment in production capacity and marketing campaigns.

The timing of Ford’s announcement coincides with regulatory changes implemented by President Trump’s administration, which has rolled back several Obama-era environmental policies that previously incentivized electric vehicle adoption. These policy reversals have created uncertainty in the EV market, potentially dampening both consumer confidence and corporate investment in clean transportation technologies.

This development highlights the ongoing challenges facing automakers as they navigate the complex transition from internal combustion engines to electric powertrains. While smaller electric vehicles continue to show promise, the market for larger EVs—including pickup trucks and SUVs that generate higher profit margins—remains volatile. Ford’s pullback may signal broader industry concerns about the pace of electric vehicle adoption and could influence other manufacturers’ long-term electrification strategies, potentially slowing progress toward transportation sector decarbonization goals.