Ford CEO Jim Farley explains why the automaker is overhauling its electric vehicle business after struggling for years to make it profitable. He speaks with Matt Miller on "Bloomberg The Close."

Michigan

Ford Motor Company has announced a major overhaul of its electric vehicle business, resulting in $19.5 billion in related charges. The company will discontinue its next-generation electric F-series truck and instead focus on hybrid vehicles, citing changing consumer preferences and a significant decline in U.S. EV market share.

As part of the restructuring, Ford has raised its 2024 profitability forecast and plans to produce more affordable hybrid trucks and vans. Additionally, Ford will convert some battery plants to produce energy storage batteries, marking a strategic shift toward more profitable and in-demand vehicle and energy solutions.

Ford to take $19B in charges tied to sweeping EV unwind

Just a few minutes ago we learned that Ford is undergoing a sweeping overhaul of its electric vehicle business. It's going to amount to about nineteen point five billion dollars in charges. It's also going to include scrapping its next generation electric F series truck as a shift gears to a hybrid. Joining us right now to talk a little bit more about this is the host of Bloomberg's open interest Matt Miller. And he brings along with him the CEO of Ford Jim Farley. Jim thanks very much for joining us. This is a major pivot to say the least. But I think we could all see it coming because the consumer basically helped make this decision for you. Tell us what what what's driven these plans. Well as you said it was really the customer changing their decision. You know we saw hybrids really take off last couple of years like you know last month about what we had 30 percent increase in our hybrid sales. We're now number three in our I think we're 80 percent hybrid market share in trucks. So we saw this happening. We also saw the more expensive EVs you know really suffer in the market and the more affordable EVs to do better. And then the last couple of months it really was remarkable. The EV market in the U.S. went from 12 percent in the industry to only five. And that that really in the end was the big decider for us. But look we're we're going to 50 percent electric. It just be it's going to be hybrids and revs and electric. It won't be just pure electrics. So you know every good trader knows you've got to cut your losses when you recognize there's an issue you're doing that. And in this sense with the F-150 Lightning as we now know it and the T3 project the next generation truck that would have been built in Tennessee. But you're able to I guess salvage some assets. And as a result you've raised your profitability forecast from six to six and a half billion dollars for this year in terms of EBIT to seven billion dollars. Where are you gaining an opportunity from this Jim. Well great question. This year in the short term it's really our cost of our company. Our quality is getting better and so our costs are much more competitive. In fact the novellas aluminum has cost us more like two billion. But we're still raising guidance. Look for this announcement Matt. It's really about moving to more profitable vehicles. You know we're going to make in Tennessee now an affordable pickup truck. I think it's going to really surprise the market. These are customers we know not a lot of guesswork in terms of the revenue the cost we need to get at and a more affordable van in Ohio. So these are going to be better investments for the company profit and all those hybrid sales. You know those are really profitable vehicles for us as we basically deploy hybrid across our lineup. But we're also going into the energy storage business to 20 gigawatt hour. You know that's a that's a big move. We're going to convert our battery plants from automotive batteries to energy storage batteries using LFP. That's also a big pivot that is profit positive for the company.

Police say the alleged gunmen who opened fire at a Hanukkah celebration in Sydney's Bondi Beach had traveled to Mindanao in the Philippines last month, as investigators probe ties to extremist networks.

Bondi Beach

Islamic State link eyed after Bondi Beach gunmen's Philippine visit

Donald Trump has launched a $10 billion defamation lawsuit against the BBC, accusing the broadcaster of altering his words in a documentary about the Capitol riot.

Washington

Trump sues BBC for $10 billion over edited Capitol riot speech

Zelenskyy hails progress with the US during Berlin talks about security guarantees. Europeans vow to protect Ukraine, including via military means, against Russia in the future. But disagreements over territories remain.

Berlin

EU vows to assist Ukraine against future Russia attack at Berlin talks

Australia's prime minister said a mass shooting at a Hanukkah celebration at Bondi Beach appears to have been motivated by ISIS ideology. Meanwhile, mourners flocked to the site to lay flowers and grieve for the people killed, including a 10-year-old child.

Council of the City of Sydney

Bondi Beach shooting motivated by ISIS ideology: Australian PM

Four people have been arrested in California - charged with plotting a series of bombing attacks on multiple targets on New Year's Eve.

California

FBI arrests four over alleged New Year’s Eve bomb plot in California

Police in Rhode Island are searching for a new person of interest following Saturday’s deadly shooting at Brown University. Investigators say the case remains active as authorities work to determine a motive.

Providence

New person of interest sought in Brown University shooting

The son of filmmaker Rob Reiner was arrested on homicide charges after the director of beloved movies like "When Harry Met Sally ..." and his wife were found dead in their Los Angeles home, a police official said on Monday.

Los Angeles

Rob Reiner's son arrested after director and wife found dead

A jury found Brian Walshe guilty of first-degree murder in the death of his wife Ana on New Year's Day in 2023 in their Massachusetts home. Legal analyst Jennifer Roman joins with more details.

Boston

Brian Walshe found guilty of first-degree murder in wife's death

Hong Kong's High Court on Monday (December 15) found pro-democracy campaigner Jimmy Lai guilty of conspiracy to collude with foreign forces and to publish seditious material under a China-imposed national security law that could see him jailed for life.

Hong Kong Island

Hong Kong court finds Jimmy Lai guilty in landmark security trial

Ukrainian President Volodymyr Zelenskyy and U.S. negotiators are meeting in Berlin. As the U.S. grows increasingly pressed to end the four-year war, the peace negotiations continue, with territorial concessions to Russia remaining the "sticking point" for Ukraine.

Ukraine Invasion

Zelenskyy offers to drop NATO bid for security guarantees

Police have released a person of interest who was detained in a shooting at Brown University. Two students were killed and at least nine others were injured in the Saturday attack. Tom Hanson spoke with students about the shooting.

Police release person of interest in shooting at Brown University

Ukraine’s President Volodymyr Zelenskiy proposed abandoning NATO ambitions in exchange for Western security guarantees during peace talks in Berlin. The move marks a major shift as Kyiv seeks to end the war with Russia without ceding territory.

Ukraine offers to drop NATO bid at Berlin peace talks

Rob Reiner and his wife, Michele, were found dead Sunday in their Los Angeles home, sources told CBS News, in what police called an apparent homicide. Rob Reiner was 78 and Michele Reiner was 68.

Brentwood

Director Rob Reiner and his wife found dead in their L.A. home

Far-right candidate Jose Antonio Kast wins Chile's presidential run-off, after defeating his leftist opponent.

Santiago

Far-right candidate Jose Antonio Kast wins Chile’s presidential election

The person of interest authorities took into custody in connection with the shooting at Brown University has been identified as Benjamin Erickson. He's a 24 year old, originally from Wisconsin.

Person of interest identified in Brown University shooting

Two alleged gunmen who killed 15 people at a Jewish celebration in Sydney's Bondi Beach were a father and son, police said on Monday, as Australia mourned victims of its worst gun violence in almost 30 years. This video contains graphic images.

Father and son behind Bondi mass shooting, Australian police say

Israel has described a deadly mass shooting at Sydney’s Bondi Beach as an attack on Jews, after gunmen opened fire during a Jewish holiday event, killing at least 11 people.

Israel calls Bondi shooting attack on Jews, urges action on antisemitism

Two gunmen attacked a Hannukah celebration on a Sydney beach Sunday, killing at least 11 people in what Australian Prime Minister Anthony Albanese called an act of antisemitism and terrorism.

Gunmen kill several at Jewish gathering in Sydney's Bondi Beach

Providence police have detained a "person of interest" in connection with the Brown University shooting that left two students dead and another nine people wounded, as the Ivy League school said it had lifted a shelter-in-place order for its campus in Rhode Island.

Police hold person of interest after Brown University shooting

Belarus has freed more than 120 political prisoners in a major thaw in relations with the United States. The releases came in return for Washington lifting sanctions on potash, a key source of revenue for Belarus.

Minsk

Belarus releases 123 prisoners as U.S. lifts sanctions

Washington was still under a state of emergency on Saturday after torrential rains swamped communities. Plus, snow and dangerous cold are falling on some in the Midwest and on the East Coast. Nicole Valdes has more from Washington state.

Deming

Washington under state emergency as rains ease

China's plans for a massive new embassy in the British capital were delayed until January. Construction plans have proven controversial, with some raising espionage concerns. Ramy Inocencio has more from London.

London

Controversial Chinese embassy construction in London delayed

A United Airlines jetliner lost one of its engines during liftoff from Washington's Dulles Airport bound for Tokyo.

Tokyo

United Airlines flight loses engine during liftoff, sparks brush fire

Thailand says there is no ceasefire with Cambodia, and its military will continue fighting until it faces no further threat. That's despite the US president's earlier announcement that both sides had agreed to stop their attacks. Villages along the border are largely empty, except for a handful of volunteer security guards.

Phnom Penh

Fighting continues along Thai-Cambodia border

U.S President Donald Trump has threatened potential land strikes on Venezuela to target an illegal narcotics trade. Trump says the drugs are arriving on U.S shores and that President Nicolas Maduro is behind it. Maduro has denied the claim.

Caracas

Washington considers Venezuela land assault

King Charles III, who shared his cancer diagnosis with the world in February 2024, announced Friday that he would be scaling back his treatment after his doctors have seen success. The monarch also pushed for people to get early screenings, saying, "Early diagnosis quite simply saves lives."

King Charles to reduce cancer treatments

Belarus has freed more than 100 political prisoners, including a Nobel Peace Prize winner, in exchange for sanction relief on Belarusian potash, a U.S. statement said on Saturday.

Belarus releases political prisoners as U.S. lifts some sanctions

Ukrainian President Volodymyr Zelensky said he visited troops fending off Russian advances near the embattled city of Kupiansk that Moscow claimed to have captured last month, which Kyiv denies.

Kup'yans'k

Zelenskyy visits troops as Ukraine claims gained ground near key city

In an audacious move, the EU has decided to indefinitely immobilize the Russian sovereign assets, pushing back against external pressure to release the funds before Moscow agrees to pay war reparations to Ukraine.

Brussels

EU locking in Russian assets for good

U.S. House Democrats released new images from the estate of the late convicted sex offender Jeffrey Epstein that feature U.S. President Donald Trump and other high-profile people previously linked to Epstein.

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