Ford is on a mission to unlock profitability in its electric vehicle segment, and they’re making some big moves. The automaker, headquartered in Dearborn, Michigan, announced on Monday that it will be revamping its vehicle lineup and production facilities.
The company is looking to focus on making affordable vehicles that meet what customers want. They’re even shutting down production of some of their larger EV models, including the F-150 Lightning, which will get a makeover with a gas generator to give it an edge. Moreover, the plan includes ramping up development of smaller and more budget-friendly cars, with a new midsize pickup coming in 2027.
Ford’s president and CEO, Jim Farley, emphasized that this shift is all about responding to customer needs, stating, “The operating reality has changed, and we are deploying cash into more profitable growth. Our focus will be on sector-leading trucks and vans, hybrid solutions, and emerging profitable areas like battery energy storage.”
With a dip in EV demand following the cessation of federal tax credits in September, Ford found it tough to keep interest in its Model E line. Farley had already cautioned that this change could shrink EV demand, knocking sales from about 10%-12% down to just 5% of total auto volume. Recently, the company disclosed it sold 164,925 vehicles in November, marking a 0.9% decline from the previous year, with electric vehicle sales falling sharply by 61% to just 4,247.
Having racked up $3.6 billion in losses during the first three quarters of the year, Ford’s Model E division has already lost over $13 billion in less than three years. High battery prices and a forced shift in consumer preferences have made it harder for the company to sustain its high-end vehicle lineup.
On Monday, Ford revealed its goal to launch 5 new “affordable” models by 2030, with a focus on having four of them assembled in the U.S. They also plan to get 50% of their global vehicle sales from hybrids, extended-range EVs, and full electric models by 2030—up from just 17% currently.
To facilitate this production switch, Ford is reworking some of its plants. By 2029, their Tennessee Electric Vehicle Center is set to transform into the Tennessee Truck Plant, retooling to produce the new Built Ford Tough truck models instead of full electric vehicles. Similarly, the Ohio factory will start assembling new gas and hybrid cars by 2029.
As part of this transformation, Ford also announced plans to hire thousands of new employees for its U.S. operations. After finishing production on the 2025 F-150 Lightning, they’ll redeploy about one-third of the workers to produce new gas and hybrid versions of the F-150.
Facing a significant financial pivot, Ford plans to account for $19.5 billion in charges, largely expected to be booked in 2026, including an $8.5 billion asset write-down for their Model E. However, the company did also increase its EBIT outlook for 2025 to roughly $7 billion, up from a previous estimate of $6 billion, and reaffirmed its cash flow targets of $2 billion to $3 billion.
Despite all of this upheaval, Ford still believes strongly in its future, expecting their Model E division to turn a profit by 2029. Earlier this year, the automaker had envisioned profitability by 2026. When considering investments like a $2 billion revamp of a factory in Kentucky for electric production, analysts have stressed that success hinges on delivering appealing products that resonate with consumers—otherwise, those hefty investments are all for nothing.
“If the vehicles are unappealing simply because they are electric, we’re in serious trouble,” said Morningstar equity strategist David Whiston. “The key is to create an attractive vehicle with great battery range and competitive manufacturing costs.”
As Ford navigates this transition, the challenge remains: can they deliver the highly desired vehicles customers want? At this point, the spotlight is set firmly on the products that are yet to come.
[Note: The headline of this article has been adjusted to clarify that Ford is pivoting its Lightning line of vehicles.]
