Ford is making a bold pivot by discontinuing its all-electric F-150 Lightning amid staggering financial losses, with a staggering $19.5 billion write-down marking the dramatic shift in its electric vehicle strategy.
CEO Jim Farley emphasizes that this move responds to a cooling demand for larger electric vehicles and reflects a strategic redirection toward hybrid models that are more appealing to current consumers.
The revamped F-150 Lightning is set to transform into an Extended Range Electric Vehicle (EREV), incorporating a gasoline generator to extend its driving range, blending traditional power with electric innovation.
This retreat signifies a larger trend among automakers recalibrating their electric ambitions in the face of rising production costs and regulatory challenges, with Ford acknowledging the impact of shifting political landscapes on EV growth.
The decision has shaken the automotive supply chain, with shares of battery supplier LG Energy Solution dropping following the announcement, illustrating the broader repercussions of Ford's drastic change in direction.
In addition to redefining its vehicle offerings, Ford plans to launch a new battery energy storage business, indicating its commitment to diversifying beyond just vehicle manufacturing as it seeks new growth opportunities.
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