Ford to take $19.5b charge as it reshapes EV strategy

Ford has announced a new strategy to increase profitability by focusing on trucks, hybrids, and affordable EVs, while also launching a battery energy storage business in the US.

Ford expects to record around US$19.5 billion in special items, mainly in Q4 2025, with about US$5.5 billion in cash effects mostly in 2026 and the remainder in 2027.

The company will produce new gas and hybrid vans at its Ohio Assembly Plant and assemble new pickup trucks at BlueOval City in Tennessee, with hiring plans for thousands of additional US employees over the next few years.

Ford said it will concentrate future EV development on a new Universal EV Platform, aiming for about 50% of global volume to be hybrids, extended-range EVs, or fully electric by 2030, up from 17% in 2025.

The company plans to begin shipping battery energy storage systems in 2027, targeting 20 GWh of annual capacity.

🔗 Source: Ford

🧠 Food for thought

Implications, context, and why it matters.

Ford’s “Universal EV Platform” still lacks specs to judge viability

Ford plans a Universal EV Platform for a $30,000 midsize pickup in 2027 1. It opts for 400 volts to cut cost, so peak charging likely sits near 200 kW 1.
The vehicle will use prismatic LFP batteries from Ford’s Marshall, Michigan plant that cost less than lithium-ion and lower fire risk 1. Battery size, range, and a detailed build schedule remain unknown beyond “starting in 2027” 1.
Missing data on battery capacity, material costs, and bill-of-materials targets make profit math guesswork against Chinese rivals 1. Ford expects about US$5.5 billion in cash effects, mostly in 2026 with the rest in 2027, which signals upfront risk 2.

Ford’s 20 GWh battery storage plan opens near-term spots for energy suppliers

Vendors in power conversion, inverters, energy management software, or thermal safety should register with Ford now 3. BESS shipments start in 2027 at 20 GWh per year, which compresses qualification timelines 2.
Engineering procurement and construction (EPC) firms plus system integrators can prep pilots before the 2027 start. RFP timing remains unknown. Ford favors insourcing with automation, so partners must support fast scaling 1.
Investors can watch storage supplier announcements. Early deals will hint at which providers gain entry to an auto-backed market before the 2027 ramp.