Ford sees $19.5B in special charges to ‘rationalize’ U.S. EV-related assets

Ford (F) Motor Company announced a series of actions to “sharpen its Ford+ plan,” executing a “decisive redeployment” of capital to meet customer demand and drive profitable growth. “The company is shifting to higher-return opportunities, including leveraging its U.S. manufacturing footprint to add trucks and vans to its lineup and launch a new, high-growth battery energy storage business. As part of these actions, Ford no longer plans to produce select larger electric vehicles where the business case has eroded due to lower-than-expected demand, high costs and regulatory changes. This approach prioritizes affordability, choice and profits. Ford will expand powertrain choice – including a range of hybrids and extended-range electric propulsion – while focusing its pure electric vehicle development on its flexible Universal EV Platform for smaller, affordable models,” Ford stated. Ford expects to record about $19.5B in special items, with the majority in the fourth quarter. The company expects about $5.5B in cash effects with the majority paid in 2026 and the remainder in 2027.