Ford axed major EV plans, and these latest numbers show why

By William Gavin

Ford's hybrids are more popular than ever, but the company has struggled to find momentum in EVs

Ford has discontinued the all-electric F-150 Lightning as part of an effort to refocus its electrification strategy.

Ford sold more vehicles in 2025 than in any year over the past half-decade, thanks to solid demand for its gas-powered and hybrid vehicles, which outweighed weaker electric-vehicle sales.

The Detroit carmaker (F) on Tuesday said it delivered more than 2.2 million vehicles in 2025, a 6% increase compared with a year earlier and its best annual sales performance since 2019. Ford's fourth-quarter sales performance was its best since then as well.

Ford delivered a record 228,072 hybrid vehicles last year, making for its best showing to date and for a 21.7% increase compared with a year earlier. Consumers showed a clear preference for hybrids over EVs, with the company's EV sales dropping 14.1% year over year. Meanwhile, deliveries of internal-combustion-engine vehicles rose 5.5%.

"Our growth across record hybrid sales shows that our 'power of choice' approach - offering gas, hybrid, and electric - is exactly what consumers are looking for right now," Andrew Frick, an executive overseeing Ford's Blue and Model e divisions, said in a statement.

The sales data provide some insight into why Ford last month said it would take a $19.5 billion charge as it adjusts its EV strategy. About $8.5 billion of that is related to canceled plans for several EV models.

Ford also said it would discontinue the all-electric F-150 Lightning truck and replace it with an extended-range model that has a gas-powered generator. A planned electric commercial van is being replaced by new gas and hybrid models.

Read more: Why Ford is scrapping major EV plans and taking a $19.5 billion hit

Ford said last month that its actions are in response to slower-than-expected EV adoption and recent policy changes, such as the termination of tax credits that encouraged EV purchases. Several other carmakers, including Jeep maker Stellantis (STLA) and General Motors (GM), have backtracked on some of their EV plans as well.

"This is a customer-driven shift to create a stronger, more resilient and more profitable Ford," CEO Jim Farley said in a statement last month, adding that the "operating reality has changed."

That can be seen in Ford's December-quarter sales, which captured the first full three-month period after the tax credits expired. Sales of the Mustang Mach-e SUV between October and December fell 40% compared with a year earlier, while F-150 Lightning deliveries sank 60% over that period.

That rough performance could worsen the losses Ford is expected to see from its Model e division, which has already cost the automaker billions of dollars over the years. The company is expected to report a $4.9 billion loss on that segment for 2025, according to the average of six analyst estimates compiled by FactSet.

Ford is now focusing on smaller, more affordable EVs - beginning with a midsize truck set for a 2027 launch - that it thinks should make the Model e division profitable by 2029. It also aims to develop a battery energy-storage business.

On Monday, GM said it delivered 48% more EVs in 2025 than it did a year earlier, despite a 43% year-over-year drop in the fourth quarter. That made it the second-biggest EV seller in the U.S., behind Tesla (TSLA).

Read: Tesla EV sales fall short of Wall Street's low expectations

-William Gavin

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01-06-26 1304ET