Ford Is Shifting To Hybrid Technologies For Future Three-Row SUVs, Leading To A $400M Non-Cash Charge For Discontinuing All-Electric SUV Plans And Potentially Incurring Up To $1.5B In Additional Expenses, To Be Reported As A Special Item In The Quarter They Occur
In addition to adjusting the cadence of product launches and realigning battery sourcing, Ford now plans to leverage hybrid technologies for its next three-row SUVs. As a result of this decision, the company will take a special non-cash charge of about $400 million for the write-down of certain product-specific manufacturing assets for the previously planned all-electric three-row SUVs, which Ford will no longer produce. These actions may also result in additional expenses and cash expenditures of up to $1.5 billion and the company will reflect those in the quarter in which they are incurred, as a special item.