Auto Giants Shift Gears: EV Investments Cut as Policy Support Wavers

The worldwide shift toward electric vehicles hit a visible slowdown this week, marked by major strategic pullbacks from leading automakers and softening regulatory timelines.

Ford Motor disclosed a $19.5 billion pretax charge, one of the largest asset write-downs in U.S. automotive history. Roughly $6 billion stems from dissolving its U.S. battery joint venture with SK On. Centrally, Ford has halted future development of the all-electric F-150 Lightning and recorded significant losses tied to underutilized EV capacity.

By 2030, hybrids will make up half of Ford’s global sales, up from 17% today. Its next major EV effort is now a smaller, $30,000 pickup using a “universal EV platform” by 2027. To repurpose idled battery capacity, Ford will invest $2 billion over two years to retool plants in Kentucky and Michigan, licensing technology from CATL to produce lithium-iron-phosphate cells and containerized energy-storage systems targeting data centers and residential use.

Across the Atlantic, Europe’s EV transition is also downshifting. While the EU’s 2035 phaseout rule remains, the bloc has pivoted toward a “technology-neutral” approach that accommodates synthetic fuels and plug-in hybrids.

Simultaneously, Volkswagen permanently closed its Dresden “Transparent Factory,” ending 88 years of continuous production in Germany. The plant, which built the Phaeton and more recently the ID.3, was deemed unviable due to weak demand and high costs. Facing cash pressures, VW cut its five-year investment plan from €180 billion to €160 billion, redirecting funds from aggressive electrification toward extending combustion-engine lifecycles.

In Asia, policy headwinds are emerging. Japan’s government finalized a tax revision that will impose a weight-based levy during vehicle inspections starting May 2028—a move that will disproportionately affect heavier electric and plug-in hybrid vehicles.

Edit by paco

Last Update:2025-12-22 09:28:30