Ford Motor Co.'s decision to take a nearly $20 billion charge as it shifts to hybrids from electric vehicles had little impact on the automaker's stock but did send shares of battery makers lower.
Ford is pulling back on its electric vehicle production, a move that will cost it close to $20 billion. It's switching gears to hybrid vehicles, saying it was seeing a spike in demand for hybrid vehicles.
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Ford Motor announced a $19.5 billion charge on electric-vehicle investments on Monday, the most visible sign to date of the auto industry's pullback from a technology carmakers wholeheartedly embraced early this decade.
The car maker takes a $19.5 billion write-down on its electric-vehicle business.
The Detroit automaker is refocusing on hybrids and pouring money into battery-energy storage.
Ford Motor said on Monday it will take a $19.5 billion writedown and is killing several electric-vehicle models, in the most dramatic example yet of the auto industry's retreat from battery-powered models in response to the Trump administration's policies and weakening EV demand.
Ford said it will pivot hard into gas and hybrid models, and eventually hire thousands of workers.
Amid Ford's shift away from making large electric vehicles, the automaker is adding a new product line to find a home for its batteries.
Ford is ending production of the fully-electric F-150 Lightning as part of a broader companywide shakeup of its electric vehicle plans, the company announced Monday. In its place, Ford will sell what's known as an “extended range electric vehicle” version of the truck, which adds a gas generator that can recharge the battery pack to power the motors for over 700 miles.
The sum is among the largest impairments taken by a company and marks the U.S. auto industry's biggest reckoning to date that it can't realize its electric-vehicle ambitions anytime soon.
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