Ford Overhauls EV Strategy with Major Writedown and Hybrid Pivot
Feb 25, 2026 (20 hr ago)
Neutral
Ford resets its electrification ambitions, implementing a $19.5B writedown and shifting focus to a hybrid-first product strategy.
EV Strategy Reset and Financial Impact
- Restructuring the Model e unit includes a significant $19.5 billion writedown, signaling a realignment of EV investment priorities2
- The company is shifting its product focus to a hybrid-first approach to better match costs against competitors like BYD and Tesla2
- Ford is launching a new Universal EV Platform designed to support both affordable EVs and combustion-powered utility vehicles2
Operational Realignment and Profitability Targets
- Investment pace in the Model e division will be moderated, while capital allocation increases for the Ford Blue business, focusing on hybrids and higher-margin products4
- EBIT is expected to gradually normalize in the second quarter of 2026, with a stronger operational performance anticipated in the second half of that year4
- The company is targeting an 8% adjusted EBIT margin by 2029, building upon the 3.6% margin achieved in 20254
Expansion into Energy Storage
Potential Strategic Collaborations
Product Quality and Recall Activity
Near-Term Financial Projections
- Y
- S
- Z
- Z
- Z
- B
- F
