Detroit carmaker will plough more into building petrol-fuelled trucks and vans

Ford will take a $19.5bn (£14.5bn) hit as it tore up plans to invest significant sums into electric cars.

The US car giant cut back electric vehicle (EV) production, including the production of large battery-powered pickup trucks, because of a slump in demand from drivers. The Telagraph has the story.

Ford said “lower than expected” uptake of EVs had resulted in billions in losses.

Instead, the Detroit carmaker will plough more into building conventional trucks and vans and cheaper EVs, as well as launching a new battery energy storage business.

The $19.5bn writedown, announced to Wall Street on Monday, is one of the largest financial hits suffered by a carmaker to date as bets on EVs turn sour in the face of plummeting demand.

Ford’s writedown includes $6bn to close a joint venture with South Korean company SK Group. The duo had planned to build a massive battery factory in Kentucky to propel Ford’s EV vision, but the plan has now been scrapped.

Jim Farley, Ford’s chief executive, said: “This is a customer-driven shift to create a stronger, more resilient and more profitable Ford.

“The operating reality has changed and we are redeploying capital into higher-return growth opportunities”

The move comes amid a major regulatory shift after Donald Trump, the US president, weakened rules on carmakers to cut emissions.

Mr Trump has also ended $7,500 tax credits for drivers who buy EVs, suppressing demand across the US.

Read the full story here.