Ford Motor said it will take a massive $19.5 billion charge and cancel several electric vehicle plans. The move shows how fast the car industry is pulling back from battery-powered models as demand weakens and policy support fades. The company said the charge will be spread over several years. Most of it will be recorded in the fourth quarter and then continue through 2027. Ford linked the decision to sharp changes in the market and new policies that reduced support for electric vehicles. Ford said it will replace the fully electric F-150 Lightning with a new extended-range electric model. This new version will use a gas-powered engine to recharge the battery. The company is also canceling a next-generation electric pickup known as the T3. Planned electric commercial vans are also being dropped. Ford’s chief executive said the company made the decision after recent market shifts. He said customer demand for large electric trucks has not grown as expected. Costs also remain high, making profits hard to reach. The company said about $8.5 billion of the charge is tied to canceled electric vehicle projects. Around $6 billion is linked to ending a battery partnership with a South Korean firm. Another $5 billion covers other program costs. Despite the charge, Ford raised its outlook for 2025 earnings. It now expects adjusted operating profit of about $7 billion, up from earlier guidance. After the announcement, Ford shares rose about 1% in after-hours trading. Ford said it will now focus more on gas and hybrid vehicles. The company expects hybrids, extended-range electric vehicles, and fully electric vehicles to make up 50% of global sales by 2030. Today, that share is about 17%. The shift reflects a broader industry trend. Many automakers invested heavily in electric vehicles earlier in the decade. But demand has slowed, and profits have been hard to achieve. At the same time, government support for electric vehicles has declined. In the United States, electric vehicle sales dropped sharply in recent months. Sales fell about 40% in November after a long-running $7,500 tax credit expired at the end of September. That credit had helped boost demand for more than 15 years. New policies also eased emissions rules for carmakers. This change reduces pressure to sell electric vehicles and makes gas-powered cars more attractive again. Ford’s F-150 Lightning once drew strong interest. Production began in 2022, and the company ramped up output to meet high early demand. But sales later slowed. Ford sold about 25,500 units through November, down 10% from the year before. The canceled T3 truck was meant to anchor Ford’s second generation of electric vehicles. It was planned for a new factory in Tennessee. Ford now plans to build gas-powered trucks at that site starting in 2029. With this move, Ford has effectively ended its second wave of electric vehicle plans. Future electric models will be smaller and cheaper. A special team in California is working on these designs. Ford plans to launch its first low-cost electric model in 2027. The vehicle is expected to cost about $30,000. Production will take place at the company’s Louisville plant. Ford said it expects to lose about $5 billion on its electric vehicle business this year. Losses were similar last year. The company now aims to make its electric vehicle unit profitable by 2029. The changes will affect jobs. Ford said it plans to hire thousands of workers over time as it expands gas and hybrid production. However, some layoffs are expected at a battery plant in Kentucky in the near term. Ford will also shift how it uses its battery plants. Facilities in Kentucky and Michigan will make batteries for energy storage systems. Production is expected to start within 18 months. A factory in Michigan will also supply batteries for the new $30,000 electric truck. Ford’s move highlights a major reset for the auto industry. As electric vehicle demand cools, carmakers are rethinking plans and returning to safer, more familiar ground.