Ford Books $19.5B EV Write-Down, Cancels F-150 EV as Gas Surges 50%
Ford recorded a $19.5bn write-down on its EV business and cancelled its all-electric F-150 to focus on hybrids. U.S. gas prices surged 50% to $4.51/gal, weakening EV demand and creating a strategic opening for Chinese automakers.
1. Ford EV Write-Down and F-150 Shift
In December, Ford recorded a $19.5bn charge against its EV division, scrapped its all-electric F-150 pickup and announced a conversion of the model to an extended-range hybrid. CEO Jim Farley emphasized that U.S. customers were unwilling to pay premium prices for fully electric trucks.
2. GM EV Charges and Production Change
General Motors reported $7.6bn in EV-related charges and abandoned EV assembly plans at a Michigan plant, converting it to produce conventional SUVs and pickups. These moves underscore a broader retreat by U.S. legacy automakers from high-cost EV ventures following weak consumer uptake.
3. Gas Price Spike and Chinese Opportunity
U.S. gasoline prices have climbed roughly 50% since February to an average of $4.51 per gallon due to the Iran conflict, undercutting EV appeal. This price shock has handed Chinese EV makers such as BYD a rare market opening after years of product quality improvements and accelerated production strategies.