Ford Shifts Gears: From Electric Dreams to Gasoline Glory
Well, it looks like Ford is shifting gears from the electric dream to gasoline glory. Ford is stepping back from the allectric future and leaning hard into gasoline and diesel vehicles. And this is a huge pivot, setting the stage for a potential profit surge starting in 2026. And this just isn’t about corporate maneuver. It’s a move that could redefine the American automotive landscape. It’s the end of the electric vehicle mandate and a financial lifeline for all car brands. And for years, Ford’s profits took a hit from the federal regulations pushing electric vehicles and the US government’s corporate average fuel economy, known as CAFE standards and the greenhouse gas emissions. Those rules forced automakers to sell increased share of electric vehicles with mandates aiming for nearly 100% EV sales during the 2030s. These policies brought steep fines and costly greenhouse gas credits requiring Ford to subsidize unprofitable EVs. And we’ve heard electric vehicles such as their Lightning Truck take a $40,000 loss with each vehicle. You can’t make that up even if you increase the price of your vehicles. So, in order to increase their revenues, they’re going back to gasoline powered vehicles. Before we get into it, I want to remind you to like this video and subscribe to this channel to keep up with what’s going on in the automotive world. And here’s a quick word from our video sponsor. It turns out that the key to these electric vehicles at a huge loss. And the result, it was higher prices for consumers and fewer of these vehicles that Americans actually wanted. Ford’s number one selling vehicle is the F-S series truck. And they can’t sell them if they have to make them electric. They want to sell them gasoline powered and diesel because that’s what consumers are asking for. That’s all changing. In July of 2025, a budget reconciliation bill became law, easing these regulatory pressures, and the EPA is also moving to resend the greenhouse gas endangerment finding. This is a step that’s expected to eliminate greenhouse gas fines and the credits by late 2025. And during a recent earnings call, Ford CEO Jim Farley highlighted the financial windfall, projecting a $1.5 billion in savings in 2025 alone with billions more to follow in 2026 if these credits disappear. And this is good for the brand. It’s good for the economy, it’s good for you when it comes to picking your vehicle. And if you wish to purchase a Ford vehicle or other brands, there should become more reasonably priced. Now, these savings far outweigh the potential tariff related costs, positioning Ford for a profitability boom. Here’s why EVs have not won over America. EVs aren’t vanishing entirely, but the role in Ford’s US lineup is shrinking, and the reason is straightforward. Most Americans aren’t interested despite heavy subsidies. EVs remain unprofitable for automakers. Consumers face high upfront costs, rapid depreciation, high insurance rates, and low residual values, making gasoline vehicles a more practical choice. Ford’s sales data confirms this, showing EVs as a small fraction of demand, while gasoline engines remain popular. To comply with EV mandates, Ford has to inflate gasoline vehicle prices to offset the losses, which is why all the vehicles have gotten more expensive. And technologies that we all hate like start stop technology, turbochargers, and electrification added thousands to production costs, which were passed on to buyers. Production quotas also limited how many profitable gasoline vehicles Ford could build. The outcome was a market where consumers paid more for vehicles they didn’t fully want, and Ford’s bottom line suffered, and so did their stock. Ford’s new playbook is back to what works. Great idea. With regulatory constraints fading, Ford is realigning production to match consumer demand. The company is phasing out costly technologies like start stop systems and turbochargers which were required to meet fuel economy standards. Without cafe fines, these features are no longer necessary, paving the way for lowerpriced vehicles. Ford is also bringing back naturally aspirated engines. Yay. which are cheaper to produce and known for their reliability and of course their quality. American buyers prefer the value. The 5 L V8 engine found in the F-150 and in the Mustang is a standout example. And Ford may expand its use to models like the Expedition, the Lincoln Navigator, the Ranger, and the Bronco. That actually sounds very exciting. While Ford isn’t abandoning EVs entirely, their focus will shift. EVs will remain for international markets, niche applications, and research to stay competitive if they become viable without subsidies. An August 11th showcase will highlight a new EV product, but these are expected to account for just 1% of US sales. We’re hearing it’s going to be a small truck, maybe to go against Slate. That could be interesting because the Maverick is already a direct competitor and it’s a personal choice of mine, but having it available as an EV might be a smart choice to bury slate against the competition. This strategic shift allows Ford to prioritize affordable, reliable vehicles that align with what Americans want. The financial outlook, profits are in Ford’s future. Ford’s second quarter 2025 financials offer a glimpse to the road ahead. The company reported a record 50.2 2 billion in revenue, but a $36 million net loss to special items. Ford’s EV division recorded a $1.3 billion loss. That’s up from $179 million from last year. You can’t keep taking losses and make it up in volume. It means you have to shift. So, Ford is being optimistic. By redirecting sources from EVs to commercial trucks and full-size SUVs, the company sees a multi-billion dollar opportunity. And over the air updates are cutting repair costs by 95%. They just need to do an over-theair update to remove start stop technology for the rest of us who own Ford vehicles. And I do own a Ford truck. Though this software issues still account for a third of their warranty expenses, this could be a way for them to be back in the money. Ford is still bracing for potential challenges and they’ve secured a $3 billion line of credit from JP Morgan Chase despite holding 20 billion dollars in cash and $14 billion in liquid securities. This cautious move signals confidence in its long-term strategy. If Ford’s focus on gasoline vehicles delivers, its stock price could climb as profits grow. And it’s good for consumers because the bottom line is I want a reasonably priced vehicle. Now, the end of the EV mandate is a win for affordability. New vehicle prices have soared in recent years with basic models jumping from $16,000 six years ago to a much higher average price of $46,000 for vehicles that are new across every vehicle. That’s ridiculous. Add in those EV related costs and cars just get more expensive. As Ford shifts to naturally aspirated engines, gasoline vehicle prices could drop by thousands, meaning EVs will reflect their true costs, likely making them less competitive without any subsidies. This shift restores consumer choice. Whether you prefer a reliability of a gasoline powered truck, the power of a Mustang, or the utility of an SUV, you’ll find more options at better prices. And my guess is Ford’s going to bring cars back because they got rid of them because they thought consumers didn’t want them. Although Honda and Toyota continue to sell them, as well as a few other brands, it’s probably a smart idea to offer more options to consumers. Ford’s emphasis on commercial trucks and SUVs also caters to businesses and families and key drivers of their demand. Now, this is a market-driven decision by Ford to pivot and there underscores the fundamental truth. Markets thrive when they reflect consumer preferences. Your preferences, not government mandates. The EV push forced automakers to prioritize unprofitable products, raise prices, and limit your choice. I’m constantly repeating this, but it’s time to let you decide what you want to buy. Its roll back lets Ford invest in what Americans want. Affordable, dependable vehicles that are built here in North America. Now, this could spark a revival of the US auto industry with Ford at the forefront, which would be smart that they were first to make this shift. GM is still standing strong with electric vehicles. Let’s see if they make a shift now that Jim Farley, CEO of Ford, said, “We are shifting. Typically, others will follow.” Now, other automakers are likely watching. And if Ford’s profits soar or they pay attention and move quicker, competitors are going to follow, reinforcing the trend toward gasoline and diesel vehicles. Electric vehicles will continue to evolve where they make economic sense. But not for now. The US market is hitting the gas, literally. And Ford’s decision signals lower prices, more choices, and a market that listens to you, the consumer. Whether you’re a truck driver, a family on the go, or a car enthusiast like me, this shift could mean better vehicles at better prices. So share this story with your friends who love cars or hate high costs, cuz they’re going to want to know. Ford is going to be showing you their technology of the future on August 11th with an EV showcase. If that interests you, you might want to check that out. But the real story is clear. Gasoline engines are back and Ford is ready to lead the charge. So stay tuned as we will cover more insights as it becomes available in the automotive world. If you like this video, give it a like and subscribe for more videos like this and check out our car review channel, Car Smarts. You can support me by buying me a cup of coffee. And if you want even more content, check out the links in the description. I’m Lauren Fix.
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Ford is stepping back from an all-electric future and leaning hard into gasoline and diesel vehicles, this is a huge pivot, setting the stage for a potential profit surge starting in 2026. This isn’t just a corporate maneuver – it’s a move that could redefine the American automotive landscape.
Ford’s decision signals lower prices, more choices, and a market that listens to consumers. Whether you’re a truck driver, a family on the go, or a car enthusiast, this shift could mean better vehicles at better prices. Share this story with friends who love cars or hate high costs – they’ll want to know.
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