Episode summary
Ford Will Take $19.5 Billion in Charges Tied to EV Overhaul | Bloomberg Intelligence
Bloomberg Intelligence
· · Hosts: Paul Sweeney, Scarlet Fu · Guests: Steve Man, Kristina Peterson, Tim Craighead, Devon Pendleton
Summary
Ford Motor said it will book a $19.5 billion charge tied to a sweeping overhaul of its EV business, and Bloomberg Intelligence analyst Steve Man argued the move is really about clearing the deck and shifting toward more profitable products. He pointed to losses on the Mustang Mach-E and a battery joint venture in Korea, while also saying Ford’s pivot toward hybrids, affordable trucks and vans, and a new joint venture with Renault in Europe reflects a broader industry retreat from aggressive EV expansion.
Tim Craighead said Bloomberg Intelligence’s 50 companies to watch in 2026 are drawn from a broader list of high-conviction ideas where catalysts are expected to change market expectations. He said the biggest themes are new product innovation and AI-related names, but the list also includes downside risks where cyclical pressure, competition or project delays could weigh on earnings. His examples ranged from biotech and consumer names to AI enablers like semicap equipment, foundries, nuclear power and data-center builders.
Christina Peterson said Kraft Heinz’s new CEO, Steve Cahillane, will take over on Jan. 1 and focus on organic growth, cleaner labels and health-and-wellness trends after the company split. Devon Pendleton said the Olayan Group, led by Saudi sisters Lubna and Hutham Olayan, has become a powerful but discreet global investor with long-standing Wall Street ties and a roughly $50 billion family fortune.
Key takeaways
- Steve Man said Ford’s $19.5 billion charge is mainly about writing down EV losses and resetting the company for 2026.
- Man said Ford’s Mustang Mach-E has been losing around $25,000 on the EBIT line per vehicle.
- Craighead said Bloomberg Intelligence’s 2026 watch list is driven by new-product catalysts and AI-related opportunities.
- Craighead highlighted AI infrastructure names such as Lam Research, TSMC, Constellation and ACS rather than the biggest LLM developers.
- Peterson said Kraft Heinz’s new CEO, Steve Cahillane, will push organic growth and lean into protein, fiber and cleaner labels.
- Pendleton said the Olayan sisters’ quiet influence comes from decades of relationships with Saudi leadership and Wall Street investors.
Notable quotes
“it is a very big number. They pretty much backed up the truck on on these charges”
“the important thing is it's clearing the deck for next year, right”
“these are going to be better investments for the company profit and all those hybrid sales”
“the biggest bucket are are two. One is just simply new product innovation”
“What you find are other either enabling technologies. So, think Lamb Research, it's a semicap equipment company”
How the episode opens
Bloomberg Audio Studios, podcasts, radio, news. You're listening to the Bloomberg Intelligence Podcast. Catch us live weekdays at 10 a.m.
Eastern on Apple CarPlay and Android Auto with the Bloomberg Business App. Listen on demand wherever you get your podcast or watch us live on YouTube. Ford announced it will take a $19.5 billion charge uh tied to an overhaul of its electric vehicle business after struggling to turn a profit.
Speaking with Bloomberg's Roma Bostic, Katie Griffel, and Matt Miller, CEO Jim Farley says the overhaul is about moving towards more profitable vehicles. Look, for this announcement, Matt, it's really about moving to more profitable vehicles. You know, we're going to make in Tennessee now an affordable pickup truck.
I think it's going to really surprise the market. These are customers we know, not a lot of guesswork in terms of the revenue, the cost we need to get out and a more affordable van in Ohio. So, these are going to be better investments for the company profit and all those hybrid sales.
You know, those are really profitable vehicles for us. All right, that was Ford CEO Jim Farley speaking with Bloomberg's remain remain boss, Katie Griff, and Matt Miller after that $19.5 billion charge. Uh, let's break it down.
Uh, and what does it mean for the company and for the stock? We do that with Steve Man, global autos and industrials research analyst at Bloomberg Intelligence. He's based down there in Princeton.
Steve, $19.5 billion. That is a massive number for Ford. What goes into that number?
What does it mean about their commitment to EVs?
Yeah, it is a very big number. They pretty much backed up the truck on on these charges. Uh but uh the important thing is it's clearing the deck for next year, right?
From the episode’s captions: roughly the first two minutes, lightly cleaned. Keep watching on YouTube →
Topics
- ford ev charges
- ev profitability overhaul
- kellanova ceo transition
- businessweek companies to watch 2026
- saudi olayan investment portfolio
Companies and tickers mentioned
- F
- KHC
- BLK
- JPM
- Ford Motor
- Kraft Heinz
- Kellanova
- Olayan Group
- BlackRock
- JPMorgan Chase
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Summary, takeaways and quote selection by Octagon. Quotes are short excerpts; the full conversation is in the episode.
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