Ford Motor Company has announced it will incur $19.5 billion in special charges as part of a major strategic shift, scaling back its electric vehicle investments and restructuring operations to improve long-term financial stability.
- Ford will record $19.5 billion in special charges related to restructuring
- The move includes scaling back EV investments and pausing multiple EV platforms
- Five manufacturing sites are affected by plant closures or repurposing
- Annual cost savings of $2.5 billion expected by 2027
- EV unit sales declined 14% year-over-year in Q4 2025
- Ford’s stock dropped 4.3% in after-hours trading following the announcement
Ford Motor Company is taking a significant step back from its previously aggressive electric vehicle (EV) expansion, with the company reporting $19.5 billion in special charges tied to a comprehensive restructuring of its business model. The charges stem from the decision to reduce capital allocation to EV development, including the pause of several planned electric vehicle platforms and the closure of underperforming facilities. This marks a pivotal shift from Ford’s earlier commitment to launch 16 new EVs by 2026, a goal now being reevaluated in light of market conditions and financial pressures. The $19.5 billion charge includes write-downs of assets, employee severance costs, and plant closure expenses. The company cited weak demand for certain EV models, higher production costs, and intense price competition as key drivers behind the strategic pivot. Ford’s recent Q4 2025 results revealed a 14% decline in EV unit sales compared to the prior year, further underscoring the challenges in the segment. The restructuring affects operations across North America and Europe, with the company identifying five manufacturing sites slated for phased shutdowns or repurposing. The move has triggered a reevaluation of Ford’s long-term profitability. While the company reported a $1.2 billion net loss in Q4 2025, the restructuring is expected to yield $2.5 billion in annual cost savings by 2027. Investors reacted cautiously, with Ford’s stock dropping 4.3% in after-hours trading. Analysts note that while the charge is substantial, it reflects a necessary correction to align investment with market realities. The company also plans to redirect capital toward high-margin combustion-engine vehicles and emerging mobility services, including connected car technologies and fleet solutions.