WASHINGTON (dpa): Ford is restructuring its loss-making electric vehicle (EV) business and will take a significant impairment charge of around US$19.5 billion, mostly recorded in the current quarter, the United States (US) automaker said on Monday.
As part of the shake-up, Ford will discontinue the fully electric version of its large F-150 pick-up truck.
The carmaker plans to put greater emphasis on hybrid vehicles and focus its electric line-up on smaller models.
After the success of Tesla, major US carmakers including General Motors, Ford and Stellantis poured billions of dollars into expanding their electric offerings, including plans to electrify popular pick-up trucks.
The F-150 is one of the best-selling vehicles in the US market.
But electric pick-ups - whether Ford's or Tesla's Cybertruck - have failed to sell in the volumes companies had hoped for.
The market was hit again after President Donald Trump scrapped a US$7,500 tax credit for electric vehicles.
Electric cars recently accounted for about five per cent of Ford's business, chief executive Jim Farley told broadcaster CNBC, down from around 12 per cent before subsidies expired at the end of September.
Ford's EV division has posted multi-billion-dollar losses quarter after quarter, offset by profits from its combustion-engine and commercial vehicle operations.
From next year, Ford plans to use a new vehicle platform to produce more affordable electric cars priced from US$30,000. The shift towards hybrid-powered vehicles is expected to create thousands of new jobs in the US, Farley said. - dpa
