{"id":4240,"date":"2025-12-16T20:13:16","date_gmt":"2025-12-16T20:13:16","guid":{"rendered":"https:\/\/microvibenews.com\/?p=4240"},"modified":"2025-12-16T20:13:16","modified_gmt":"2025-12-16T20:13:16","slug":"fords-ceo-said-the-ev-market-would-be-halved-without-subsidies-now-hes-writing-down-19-5-billion","status":"publish","type":"post","link":"https:\/\/microvibenews.com\/?p=4240","title":{"rendered":"Ford’s CEO said the EV market would be halved without subsidies. Now he’s writing down $19.5 billion"},"content":{"rendered":"

<\/p>\n

Several months ago, Ford CEO Jim Farley said ending the nearly two-decade-long EV tax credit would halve America\u2019s electric vehicle market. Now, his company is facing its own reality check.<\/p>\n

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Ford said this week it would cease production for the original electric F-150 Lightning, which was once touted as a breakthrough for the industry, and shift some of its existing workforce to producing a hybrid version of the pickup with a gas-powered generator called an EREV\u201a or an extended range electric vehicle. The automaker said it would be taking a $19.5 billion charge in 2026 as a result of this \u201ccustomer-driven shift.\u201d\u00a0<\/p>\n

With that in mind, it\u2019s worth reviewing what Farley said at the Ford Pro Accelerate summit in Detroit in September. EVs will remain a \u201cvibrant industry\u201d going forward, he said, but also \u201csmaller, way smaller than we thought.\u201d The end of the $7,500 consumer incentive would be a game-changer, Farley added, before predicting that EV sales in the U.S. could plummet from to 5% from a previous 10%-12%.<\/p>\n

Speaking to CNBC on Monday about Ford\u2019s electric pivot, Farley claimed the EV market had, in fact, already shrunk to around 5% of the U.S. vehicle market. The automaker\u2019s EV lineup was simply out of sync with consumer demand, he said.<\/p>\n

\u201cMore importantly, the very high end EVs, the 50, 60, 70, $80,000 vehicles, they just weren\u2019t selling,\u201d Farley told CNBC.<\/p>\n

Farley had established Ford\u2019s Model E division in 2022 to innovate on electric vehicles and operate as a startup within the more-than-100-year-old automaker. At the same time, Farley told CNBC that he knew when he established Model E, it would be \u201cbrutal business-wise.\u201d That may have been an understatement. In under three years, the Model E division has lost $13 billion, more than double Ford\u2019s net income for 2024.\u00a0<\/p>\n

As part of its pivot, Farley said the company is listening to consumers.<\/p>\n

\u201cWe\u2019re following customers to where the market is, not where people thought it was going to be, but to where it is today,\u201d he said.\u00a0<\/p>\n

This means prioritizing hybrid and semi-gas-powered EREVs over pure-play EVs. These categories are what customers are still interested in, Farley said.\u00a0<\/p>\n

To be sure, the company says its Model E division will still be profitable, but in 2029, three years after the 2026 date it had previously targeted. By 2030, the company is also predicting that hybrids, semi-gas-powered EREVs, and pure-play EVs will make up half of Ford\u2019s global sales, a stark increase from about 17% now. And most of that, Farley told CNBC, will be \u201chybrid and EREV.\u201d<\/p>\n<\/div>\n

#Fords #CEO #market #halved #subsidies #hes #writing #billion<\/p>\n","protected":false},"excerpt":{"rendered":"

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