Episode summary
Ford to Take $19.5 Billion in Charges Tied to EV Overhaul
Bloomberg Surveillance
· · 6 min · Hosts: Matt Miller · Guests: Andrew Frick, Jim Farley
Summary
Ford is taking a $19.5 billion charge tied to a sweeping reset of its electric vehicle strategy, and the discussion centered on how badly the company misread demand and economics. The host said Ford has been losing billions a year on EVs and argued the company is now trying to stop the bleeding after a costly bet on large battery-powered trucks and other premium EVs.
The guest said Ford’s move makes sense because the company built too much battery capacity and found that many of its EVs were not profitable. He pointed to the planned shift toward gas and hybrid vehicles, including converting the F-150 Lightning into an extended-range hybrid and canceling a planned electric F-Series truck. He also argued that the Tennessee product will likely be a steel-bodied truck rather than a futuristic EV.
The conversation framed Ford’s pivot as part of a broader industry correction. The guest said EV demand has slowed, federal subsidies have faded, and charging infrastructure remains inadequate for many consumers. He contrasted Ford’s EV results with GM’s broader EV lineup, saying Ford’s EV margins are deeply negative while its hybrid and traditional business remain far stronger.
Key takeaways
- Ford is booking $19.5 billion in EV-related charges as it cancels a planned electric F-Series truck and shifts toward gas and hybrids.
- The host said Ford had been losing billions annually on EVs and was forced to act after a long period of weak economics.
- The guest said Ford’s EV losses reflect too much battery capacity and a product strategy aimed at vehicles that were never likely to make money.
- The guest said Ford sold about 63,000 EVs versus General Motors’ 142,000, arguing GM has a broader, less loss-making lineup.
- Hybrids were described as the near-term answer because they add horsepower and torque without sacrificing fuel economy.
Notable quotes
“Ford has lost billions of dollars per year on this EV escapade”
“the biggest certainly by an automotive company is the product that they're going to be building in Tennessee”
“Ford sold, I'm going to say, about 63,000 EVs and General Motors sold 142,000”
“Hybrids are definitely the way forward. It allows you to add horsepower and torque without sacrificing fuel”
How the episode opens
Well, he's making pivots when pivots are needed. Some would say maybe a little bit late, because Ford has lost billions of dollars per year on this EV escapade. So I was going through the numbers and saw they lost 1,000,000,021 2,000,000,022 5,000,000,023 5 billion in 24.
And they have to do something. Just stanch the bleeding. This guy is this guy have a job after a $19 billion failure of EV simply because it's basically a private company run by our good friend Bill Ford Junior.
Is it basically a quasi private company where a normal board wouldn't say, See? I can't speak to what the board is is saying there, but Bill Ford and the Ford family obviously have a lot to do with the leadership of this country. And they have a company and they have a very close relationship with Jim Farley, who has worked also closely with the administration in order to get regulations I think changed in a way that could benefit Ford.
The interesting thing to me is beyond the gigantic write off write one of the biggest ever by any company and the biggest certainly by an automotive company is the product that they're going to be building in Tennessee. They already build enough F-150, more than enough in Dearborn and Kansas City, and they're going to build something different. And it'll be the first time Ford builds a full sized truck.
That's not an F-Series pickup truck since 1947. And I think this is you know, people don't give enough credit to Ford, this brand, the F-Series pickup truck. It's up there with like Coca-Cola and Levi's.
So huge, huge shift. We digressed to Ford. It's 94,000 a year.
Correspondent You have an F-150, right? Thanks to Matt Miller. He put me in a in the seat of an F-150 lightning for a week.
From the episode’s captions: roughly the first two minutes, lightly cleaned. Keep watching on YouTube →
Topics
- ford ev charges
- ev business overhaul
- battery production capacity
- f-series lightning conversion
- trump policy impact
Companies and tickers mentioned
- F
- Ford Motor Co.
Watch the episode
Watch “Ford to Take $19.5 Billion in Charges Tied to EV Overhaul” on YouTube
Summary, takeaways and quote selection by Octagon. Quotes are short excerpts; the full conversation is in the episode.
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