Ford Motor Co. is drastically scaling back its electric vehicle plans and refocusing its U.S. manufacturing footprint on hybrid and gasoline vehicles to reduce losses from an EV market that never developed the way it envisioned.
Ford has announced a comprehensive realignment of its electric vehicle business—primarily focused on North America. Production of the F-150 Lightning, which was already paused, will not resume, and the electric pickup under the T3 codename will not be brought to market.
Ford said the change in strategy will cost the automaker about $19.5 billion, with most of that reflected in fourth-quarter special charges. Still, Ford raised its 2025 guidance to “about $7 billion” in adjusted earnings before interest and taxes, from a previous range of $6 billion to $6.5 billion, citing “continued underlying business strength” and cost improvements.
Ford announced it is discontinuing the full-electric F-150 Lightning, a truck its top executives once likened to the Model T in significance, after less than 4 years of production. Ford already halted production in October after a fire at an aluminum plant supplier, so it could divert resources to more profitable gasoline- and hybrid-powered versions of the F-150.
No F-150 Lightning, no T3 pick-up
The discontinuation of the F-150’s battery-electric version had been anticipated for some time. Despite 200,000 pre-orders for the all-electric pickup, customer interest rapidly declined, forcing Ford to suspend production multiple times.
The company has now confirmed that a range extender will replace the battery-electric version, the F-150 Lightning EREV. This newly announced model is expected to achieve a combined range of over 1,100 kilometres.
Ford emphasizes that the extended range is particularly critical for journeys with heavy trailers, one of the main customer criticisms of the battery-electric version. However, no further details beyond the range have been disclosed so far.
Ford is also discontinuing a new electric pickup codenamed T3, whose launch had already been postponed several times. Additionally, the company will not proceed with a previously planned all-electric van for Europe. It will replace a planned electric van for North America with a new model featuring petrol and hybrid powertrains. Overall, Ford is shifting its focus towards new petrol and hybrid models.
However, Ford is not abandoning the electric vehicle market entirely. Instead, it is discontinuing models or series that are particularly unprofitable or no longer expected to become profitable due to market developments.
This includes the T3, once hailed as a “revolutionary” flagship model. “Rather than spending billions more on large EVs that now have no path to profitability, we are allocating that money into higher-returning areas,” said Andrew Frick, head of Ford’s internal combustion engine and EV division.
Ford’s EV division, Model e, is expected to reach the break-even point by 2029, “with improvements beginning as early as 2026,” according to the company. To date, the Model e has accumulated billions in losses.
Universal EV Platform
Ford expects these higher returns from the next generation of its US electric vehicles. In developing new battery-electric models, Ford will entirely rely on its Universal EV Platform to produce significantly more affordable electric vehicles for the North American market.
However, production models based on this platform will only gradually enter the market from 2027 onwards. By 2030, Ford aims to have half of its sales be electric vehicles, hybrids, and range extenders, up from just 17% currently.
The effects of Ford’s more cautious electric strategy are also evident in Europe. For the continent, Ford recently announced a new collaboration with Renault to develop affordable EVs rather than pursue in-house development.
Ford already offers two electric models based on Volkswagen’s MEB platform: the Explorer and the Capri. Both vehicles are selling below expectations, likely because they provide little differentiation from VW Group models in key areas such as range and charging performance, and are, on average, slightly more expensive. It remains unclear in which segments and at what prices the electric Fords resulting from the Renault collaboration will be launched.
Repurposing plants
Following the dissolution of the battery joint venture with SK On, Ford plans to repurpose its own plants in Kentucky and Michigan to produce LFP batteries for stationary applications in energy infrastructure and data centers. The company aims to deliver battery energy storage systems (BESS) with an annual capacity of 20 GWh starting from 2027.
The start of production at a second battery plant in Kentucky, owned by the same Ford subsidiary as the first, remains indefinitely postponed.
“This is a customer-driven shift towards a stronger, more resilient, and more profitable Ford,” said Jim Farley, President and CEO of Ford. “The operational reality has changed, and we are investing our capital in high-growth, high-return areas: Ford Pro, our market-leading trucks and vans, hybrid vehicles, and high-margin businesses like our new battery storage division.”
