Ford’s EV COLLAPSES — $19.5B Disaster

Ford’s massive financial losses in its electric vehicle strategy signal a harsh reality check for automakers tied to past subsidy-driven policies.

Story Highlights

Ford’s $19.5 billion special charges highlight a significant EV pullback.
President Trump rescinds Biden-era EV mandates, altering the auto market landscape.
David Blackmon critiques the “EV fad” as driven by unsustainable policies.
Ford shifts focus to hybrids and smaller EVs, responding to market demands.

Ford’s Financial Reckoning

In December 2025, Ford Motor Company announced a staggering $19.5 billion in special charges, marking a significant restructuring of its electric vehicle (EV) strategy. CEO Jim Farley confirmed the cancellation of the next-generation full-size electric pickup and a pivot towards hybrids, cheaper EVs, and Extended Range Electric Vehicles (EREVs). These moves come as the company grapples with cumulative EV-related losses exceeding $15.6 billion by the third quarter of 2025.

This financial upheaval highlights the challenges of an EV strategy heavily reliant on subsidies and regulatory mandates from the Biden era. Under President Trump’s administration, the recent rescinding of these mandates is seen as a corrective measure allowing automakers to realign with consumer preferences. David Blackmon, an energy writer, frames this shift as a necessary response to unsustainable EV policies that prioritized political agendas over market realities.

The Shift in Auto Industry Policies

President Trump’s decision to roll back Biden-era Corporate Average Fuel Economy (CAFE) mandates is pivotal in reshaping the automotive landscape. These regulations had pressured automakers like Ford into aggressive EV production, despite weak consumer demand and significant financial losses. The policy reversal is expected to empower companies to produce vehicles that align with consumer desires, focusing more on ICE vehicles and hybrids that offer better profitability and practicality.

Ford’s transparency in reporting its EV losses, unlike some competitors, underscores the severity of the situation. The company’s willingness to disclose these large losses serves as a case study in the pitfalls of a subsidy-dependent strategy. Ford’s strategic pivot and the broader industry response highlight the need for policies that reflect economic realities rather than idealistic targets detached from consumer behavior.

The Market’s Response and Future Outlook

As Ford navigates its restructuring, the market’s reaction is mixed. Investors face a significant hit from the special charges and are closely watching Ford’s leadership under Jim Farley. The company remains profitable due to its strong ICE and hybrid segments, but the EV initiative’s drag on financial performance raises questions about future strategy and management stability.

DAVID BLACKMON: Ford’s EV Fiasco Fallout Hits Hard https://t.co/4y1Wn6VmBn

— News Span Media (@newsspanmedia) December 18, 2025

Ford’s shift towards hybrids and smaller EVs reflects a broader industry trend as automakers reassess their strategies in the wake of changing regulations and market demands. The cancellation of large EV projects and the focus on more sustainable models indicate a pragmatic approach to balancing innovation with economic viability. As the auto industry adapts, the lessons learned from Ford’s experience may guide future policy and investment decisions.