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Ford EV Asset Write Offs Total $19 Billion Through 2027
By Brett Foote
January 12, 2026 10:22 am
Last month, Ford announced a major strategic shift that involves the cancelation of its second-generation all-electric models, with more of a focus on hybrids, extended range electric vehicles (EREVs), and electric vehicles riding on its new Universal EV Platform. This shift came mere weeks after Ford and SK On dissolved the BlueOval SK joint-venture, with several new and under-construction plants being repurposed as a result. As one might imagine, decisions of this magnitude aren't exactly cheap to make, however.
Rather, Ford announced that it's taking a $19.5 billion hit, with the majority of this loss being recorded in Q4 2025, with the remainder following in 2026 and 2027. As part of these special items, the company expects approximately $5.5 billion in cash effects, with the majority paid in 2026 and the remainder in 2027. Of that total, an $8.5 billion hit to the automaker's earnings before cash and interest (EBIT) will go to Ford Model e's asset impairment and program asset write-down, all of which occurred in 2025.
As for the BlueOval SK disposition, that will cost Ford $3 billion in EBIT for 2025, as well as 2026/2027, along with $500 million in cash across this year and next. Additional program expenses will account for a loss of $1 billion in EBIT for 2025 and $4 billion in 2026/2027, as well as $5 billion in cash over the latter two years. This means that total pre-tax special items stemming from the strategic shift will come in at $12.5 billion for 2025, as well as $7 billion in 2026 and 2027 - not counting the $5.5 billion in cash.
Ultimately, Ford expects that this short term pain will result in long terms gains, especially in terms of profitability. Ford Model e - its EV-focused division - has been losing billions for quite some time now, but The Blue Oval expects that its actions will result in massive improvements in that regard. In fact, Ford believes that Model e will now reach profitability by 2029, with improvements starting to show up as soon as this year.
By Brett Foote
January 12, 2026 10:22 am
Last month, Ford announced a major strategic shift that involves the cancelation of its second-generation all-electric models, with more of a focus on hybrids, extended range electric vehicles (EREVs), and electric vehicles riding on its new Universal EV Platform. This shift came mere weeks after Ford and SK On dissolved the BlueOval SK joint-venture, with several new and under-construction plants being repurposed as a result. As one might imagine, decisions of this magnitude aren't exactly cheap to make, however.
Rather, Ford announced that it's taking a $19.5 billion hit, with the majority of this loss being recorded in Q4 2025, with the remainder following in 2026 and 2027. As part of these special items, the company expects approximately $5.5 billion in cash effects, with the majority paid in 2026 and the remainder in 2027. Of that total, an $8.5 billion hit to the automaker's earnings before cash and interest (EBIT) will go to Ford Model e's asset impairment and program asset write-down, all of which occurred in 2025.
As for the BlueOval SK disposition, that will cost Ford $3 billion in EBIT for 2025, as well as 2026/2027, along with $500 million in cash across this year and next. Additional program expenses will account for a loss of $1 billion in EBIT for 2025 and $4 billion in 2026/2027, as well as $5 billion in cash over the latter two years. This means that total pre-tax special items stemming from the strategic shift will come in at $12.5 billion for 2025, as well as $7 billion in 2026 and 2027 - not counting the $5.5 billion in cash.
Ultimately, Ford expects that this short term pain will result in long terms gains, especially in terms of profitability. Ford Model e - its EV-focused division - has been losing billions for quite some time now, but The Blue Oval expects that its actions will result in massive improvements in that regard. In fact, Ford believes that Model e will now reach profitability by 2029, with improvements starting to show up as soon as this year.
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