Ford is backing away from plans to manufacture large electric vehicles, the US carmaker said on Monday, citing lacklustre demand and recent regulatory changes under US President Donald Trump.
The company will instead invest in producing profitable hybrid and gas-powered vehicles and smaller, more affordable EV models.
Ford said it expects its profits to take a $19.5bn (£14.6bn) hit as a result of the strategic shift, which comes as the Trump administration eases fuel economy rules.
The business case for leaning heavily into EV production, specifically large-sized EV models, has "eroded", Ford said in a statement, "due to lower-than-expected demand, high costs and regulatory changes".
"This is a customer-driven shift to create a stronger, more resilient and more profitable Ford," Jim Farley, Ford's chief executive, said in a statement.
