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Ford announced a major reset of its EV strategy, pivoting away from lower-return large EVs and reallocating capital toward higher-return opportunities, including trucks and vans, hybrids, and a new battery energy storage business.

• EV strategy shift: Ford will no longer produce select larger EVs where demand, costs, and regulatory changes have eroded the business case. Focus shifts to smaller, more affordable EVs and hybrids.
• Model e profitability: Actions provide a path to profitability by 2029, with annual improvement targeted to begin in 2026.
• Charges: Ford expects about $19.5 bln in charges, mostly in 4Q25, tied to these strategic changes.
• Trucks & vans: Leveraging its U.S. manufacturing footprint, Ford will expand higher-margin Ford Blue and Ford Pro offerings, with early profit benefits expected in 2026.
• F-150 Lightning: Production of the full-size electric Lightning has stopped. Ford will instead introduce an extended-range (EREV) version, targeting 700+ miles of range, sub-5-second acceleration, and strong towing capability.
• Europe: Ford no longer plans to produce a previously announced electric commercial van for the region.
• Electrification mix: By 2030, Ford expects ~50% of global volume to be hybrids, extended-range EVs, and fully electric vehicles, up from 17% in 2025.
• Battery energy storage: Launching a new business to serve data centers and grid infrastructure by repurposing underutilized U.S. EV battery capacity. Ford plans to invest ~$2 bln over the next two years to scale the business.
• Guidance: 2025 adjusted EBIT outlook raised to about $7 bln, from $6.0-6.5 bln.

Briefing.com Analyst Insight:

Ford's EV reset reflects a pragmatic recognition of consumer behavior and capital discipline. While buyers want the benefits of electrification, large EV trucks remain too expensive and fall short on towing and range expectations. Rather than chasing uneconomic volume, Ford is reallocating investment toward hybrids, extended-range EVs, commercial vehicles, and a potentially attractive battery energy storage business that leverages existing assets. The strategy comes with near-term pain, as evidenced by the sizable $19.5 bln charge, but it improves the long-term return profile and supports the company's decision to raise its 2025 EBIT outlook. Execution risk remains, yet the pivot should enhance profitability and reduce cash burn in Model e over time.