To compete with Chinese EV maker BYD, CEO Jim Farley concluded his existing team and processes were inadequate. He formed an independent group with new talent, separate IT systems, and a different philosophy to radically simplify vehicle design and manufacturing.

Ford's massive write-down and scrapping of the F-150 Lightning signals a critical vulnerability in the EV market. The business case for many EVs has relied heavily on government subsidies and mandates, not standalone profitability. As these supports disappear, the weak underlying economics are forcing automakers into dramatic pivots.

Ford's CEO states the company's EV investment strategy is designed to be sustainable without consumer tax credits. The new universal platform's primary goal is to make an affordable EV that is profitable for Ford on its own merits, a crucial step for long-term market viability.

While maintaining EVs as its long-term 'North Star,' GM is pragmatically adjusting to slowing EV adoption and regulatory shifts. CEO Mary Barra acknowledges the need to 'meet the customer where they are,' indicating that the profitable internal combustion engine (ICE) business is crucial for funding the transition and maintaining stability through market volatility.

The belief that consumers needed electric versions of familiar gas-guzzling trucks and SUVs led to EVs that were too big, heavy, and expensive. The market is now forcing a pullback from this strategy towards smaller, more efficient, and profitable designs.

Conceding that competitor BYD has a cost advantage from vertically integrated battery production, Ford's CEO revealed a counter-strategy: designing motors and gearboxes so efficient they require 30% less battery capacity to achieve the same range, thereby bypassing the core battery cost problem.

Ford celebrated attracting buyers new to trucks and their brand. In hindsight, this data was a "canary in the coal mine," signaling that their core, loyal truck customers—the largest market—were rejecting the electric vehicle. This misinterpretation led to a flawed growth narrative.

The F-150 Lightning retained its iconic, familiar shape, which failed to signal its electric nature. The Cybertruck's wild, futuristic look was a deliberate status symbol that appealed to truck buyers wanting to showcase their adoption of new technology.

Ford's decision to end its flagship F-150 Lightning EV program and pivot toward a 50% hybrid fleet by 2030 is a major signal that the mainstream US auto market is not ready for a full EV transition. It shows that the most viable near-term strategy for legacy automakers is the 'Goldilocks' hybrid option.