06:39 AM EST, 12/16/2025 (MT Newswires) -- Ford Motor ( F ) said it expects to record charges of $19.5 billion as the automaker scales back some electric vehicle operations amid lower-than-expected demand, high costs and regulatory changes.

The company last week decided to rationalize its EV manufacturing capacity and product roadmap, including the cancellation of three previously planned electric vehicles and the end of production of its current generation F-150 Lightning EV, according to a late Monday filing with the Securities and Exchange Commission.

Ford expects these actions to provide a profitability path for its Model e by 2029, targeting annual improvements beginning next year. They are also expected to improve profits in Ford Blue and Ford Pro over time. The auto manufacturer and its subsidiaries plan to hire "thousands" of employees across the US to support this plan.

The company's shares edged up 1.1% in Tuesday's most recent premarket activity.

The automaker expects the majority of the $19.5 billion charge to be recorded in the fourth quarter of 2025, with the remainder coming in 2026 and 2027. It also expects about $5.5 billion in cash impacts, with the majority paid in 2026 and the remainder in 2027.

"This is a customer-driven shift to create a stronger, more resilient and more profitable Ford," Chief Executive Jim Farley said in a statement. "The operating reality has changed, and we are redeploying capital into higher-return growth opportunities."

Ford now plans to offer a range of hybrid models to complement its gas-engine lineup and focus its North American EV development on a new, low-cost and flexible universal EV platform. The company anticipates around 50% of its global volume will be hybrids, extended-range EVs and fully EVs by 2030, up from 17% currently.

The F-150 Lightning will shift to an extended-range EV and is expected to be assembled at the company's EV facility in Dearborn, Michigan. Ford has also withdrawn plans to make its previously announced new electric commercial van for Europe, but said it will maintain its full lineup of electrified vans for the region.

The company intends to produce a new gas and hybrid van at its assembly plant in Ohio and new gas-powered trucks in Tennessee, both starting in 2029.

For the 2025 full year, Ford now projects its adjusted earnings before interest and taxes to come in at about $7 billion, reflecting "continued underlying business strength, including cost improvement." It previously estimated the metric to be in a range of $6 billion to $6.5 billion.

Free cash flow is now pegged to be at the higher end of a $2 billion to $3 billion range for the ongoing year, the company added.