Ford Pulls Back from EV Plans After $19.5 Billion Hit

Summary

WSJ What’s News – Ford Pulls Back from EV Plans After $19.5 Billion Hit

Date: December 15, 2025
Host: Sabrina Siddiqui (for The Wall Street Journal)

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Episode Overview

This episode dives into Ford's massive $19.5 billion write-down on its electric vehicle (EV) investments and what it means for the automaker's future. It also explores contrasting housing policy outcomes in Minnesota’s Twin Cities, major security developments between the U.S. and Ukraine, and business headlines including the collapse of a Trump-branded hotel deal in Serbia.

The theme centers on how shifts in regulation, demand, and public policy are prompting major reversals and realignments—both in corporate strategy and urban governance.

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Key Discussion Points and Insights

Ford’s $19.5 Billion EV Write-Down and Strategic Pivot

[07:22]

• Announcement: Ford revealed it expects to take about $19.5 billion in charges, chiefly linked to its EV business.
  • “Ford says it expects to take about $19.5 billion in charges mainly tied to its electric vehicles.” – Sabrina Siddiqui [07:27]
• Background: Since 2023, Ford has lost $13 billion on its EV business, citing regulatory changes and weak consumer demand.
• Strategic Shift:
  • Ford will now pivot to increase gas and hybrid offerings, moving away from an all-in EV approach.
  • Key move includes stopping production of the F-150 Lightning (EV version) in favor of an extended-range hybrid model.
    • "It will stop making an EV version of its F-150 pickup truck called the Lightning. It will instead make what’s known as an extended range version of the truck.” – Sabrina Siddiqui [07:37]
  • By 2030, hybrids, EVs, and extended-range EVs are projected to account for about half of Ford’s global volume.
• Industry context: U.S. automakers are broadly slowing EV rollouts due to regulatory uncertainty and tepid demand.
• Market Reaction: Ford shares rose 1.5% in after-hours trading despite the news.
  • “Ford shares rose about 1.5% in after hours trading.” – Sabrina Siddiqui [08:17]

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Housing Policy Experiments in Minnesota’s Twin Cities

[03:33 – 06:36]

St. Paul: Rent Control Rollback

• Rent Cap Implementation:
  • In 2022, St. Paul capped annual rent increases at 3% for most apartments.
• Outcome:
  • This led to a steep decline in new housing construction, with building permits for Jan–May 2022 dropping 79% compared to the previous year.
    • “Development pretty much fell off a cliff… building permits in St. Paul were 79% lower than the same period the year before.” – Rebecca Pichotto [04:02]
  • Developers and investors were deterred by rent restrictions, stalling new projects and conversions.
• Policy Reversal:
  • The city is beginning to roll back parts of its policy after seeing the unintended chilling effect.
  • “It’s not a wholesale rebuke of rent control, but the first attempt didn’t necessarily go as planned.” – Rebecca Pichotto [04:58]

Minneapolis: Housing Supply Boost

• Policy Approach:
  • Instead of rent control, Minneapolis reformed zoning in 2020 to enable more apartment construction, especially in neighborhoods previously zoned for single family homes.
• Results:
  • During Jan–May 2022, building permits surged to four times the previous year’s level.
    • “Building permits were four times as high as the year before.” – Rebecca Pichotto [04:44]
  • Some neighborhoods, like the North Loop, saw a surge in high-end apartment construction, creating a vibrant scene for young renters.
• Caveats:
  • Despite the building boom, most new units skewed luxury, leaving affordability concerns for lower-income renters.
  • Experts are still searching for a policy mix that boosts supply without rapid displacement.
    • “Lower income renters in Minneapolis say …new building doesn’t necessarily benefit them. The new apartments skew. Luxury.” – Rebecca Pichotto [05:57]

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Security Updates: U.S. and Ukraine

[08:42]

• Security Guarantees:
  • The U.S. has pledged to protect Ukraine from future Russian attacks as part of ongoing peace negotiations in Berlin.
• Details:
  • The offer is for U.S. support of European security guarantees, with the level of potential American military involvement still unclear.
  • Territorial disputes and political uncertainties still weigh on talks, with skepticism over whether agreements can be reached by year-end.

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Jared Kushner and the Trump Hotel in Serbia

[08:42 – 10:49]

• Project History:
  • Jared Kushner planned a Trump-branded hotel in Belgrade, Serbia, slated for a site damaged during NATO’s 1999 bombing.
  • The project drew significant protest and led to a Serbian political scandal.
• Abrupt Withdrawal:
  • Following the indictment of a Serbian cabinet minister and three others over their roles in the project, Kushner’s firm, Affinity Partners, pulled out, citing “respect for the people of Serbia.”
    • “Kushner’s private equity firm, Affinity Partners, said it was stepping aside out of respect for the people of Serbia. It was an abrupt end to a development the president’s son in law had pursued for more than two years.” – Sabrina Siddiqui [10:21]

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Other Noteworthy Headlines

• Rob Reiner Tragedy:
  • Nick Reiner, son of director Rob Reiner, arrested on suspicion of murdering his parents (Rob and Michelle Reiner), prompting major public responses from celebrities and politicians. [01:01 – 01:55]
  • “Rob Reiner was known for his liberal advocacy and was a Democratic donor. He was also a critic of President Trump, who said today… that Rob Reiner was tortured and struggling…” – Sabrina Siddiqui [01:55]
• Domestic Terror Plot Foiled:
  • Four arrested in California for alleged plot to detonate explosives at New Year’s Eve, targeting logistics businesses. [02:28]
• Business Headlines:
  • JPMorgan Chase financing $7.4 billion zinc smelter in Tennessee to secure critical minerals. [07:22]
  • EU sanctions two traders on accusations of facilitating Russian energy exports, tightening economic pressure on Moscow. [09:09]
    • “It’s a big swing at a clandestine market that has bankrolled Moscow’s war against Ukraine.” – Sabrina Siddiqui [09:21]

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Notable Quotes & Memorable Moments

• On the failure of rent control in St. Paul:

  • “Development pretty much fell off a cliff… building permits in St. Paul were 79% lower than the same period the year before.”
    – Rebecca Pichotto [04:02]

• On Minneapolis’ different housing outcome:

  • “Building permits were four times as high as the year before…”
    – Rebecca Pichotto [04:44]

• On Ford’s transformation:

  • “Ford has lost $13 billion on its EV business since 2023 and says it will now build up its lineup of gas vehicles and shift to hybrids.”
    – Sabrina Siddiqui [07:35]

• On new construction and equity:

  • “Lower income renters in Minneapolis say that all of this new building doesn’t necessarily benefit them. The new apartments skew. Luxury housing experts are still looking at trying to find this balance...”
    – Rebecca Pichotto [05:57]

• On U.S. security commitments to Ukraine:

  • “The offer came on the second day of talks in Berlin among the U.S. Ukraine and European leaders. It includes U.S. support for European security guarantees and seeks Senate backing for Washington’s promised role.”
    – Sabrina Siddiqui [08:49]

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Timestamps for Key Segments

• [03:33] – Twin Cities housing policy discussion begins
• [04:02] – St Paul’s rent control effects detailed
• [04:44] – Minneapolis’ pro-building strategy outcomes
• [05:51] – Analysis and expert takeaways on rent control vs. supply
• [07:22] – Ford’s $19.5B EV write-down & strategic shift
• [08:42] – Support for Ukraine and EU sanctions on Russian traders
• [09:46] – Jared Kushner pulls out of the Trump hotel project in Serbia

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Summary

This WSJ What’s News episode spans corporate, political, and urban stories that all highlight hard pivots in strategy—from Ford’s scaling back of electric vehicle ambitions after years of losses, to Minnesota’s divergent city housing policies, and big reversals in international business and security stances. The show underscores how market forces, political pressure, and public sentiment are forcing decision-makers to re-examine their bets and adapt for the future.

Transcript

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[Sabrina Siddiqui]

Ford is writing down a massive $19.5 billion in electric vehicle investments, plus what dueling approaches in Minnesota's Twin Cities tell us about fixing America's housing crisis.

[Rebecca Pichotto]

In St. Paul. You saw that they didn't find that it worked for their city and they're in fact starting to roll parts of it back. It's not a wholesale rebuke of rent control, but the first attempt didn't necessarily go as planned.

[Sabrina Siddiqui]

And the U.S. ukraine's security guarantees as part of peace talks with Russia. It's Monday, December 15th. I'm Sabrina Siddiqui for the Wall Street Journal, sitting in for Alex Osla. This is the PM edition of what's the top headlines and business stories that move the world today. The son of Hollywood director Rob Reiner and Michelle Singer Reiner has been arrested on suspicion of murder in the deaths of his parents. They were found dead yesterday in their Los Angeles home. And this is LAPD Chief Jim McDonald.

[LAPD Chief Jim McDonald]

Today we have our Robbery Homicide Division handling the investigation. They work throughout the night on this case and were able to take into custody Nick Reiner, a suspect in this case. He was subsequently booked for murder.

[Sabrina Siddiqui]

Nick Reiner has spoken about his battle with drug addiction over the years and has said he was homeless and in and out of shelters at times. Rob Reiner's credits include Hollywood classics such as this Is Spinal Tap, When Harry Met Sally, the Princess Bride and A Few Good Men. There was an outpouring of grief after news of the couple's deaths from Hollywood celebrities and politicians, including former Presidents Barack Obama and Joe Biden. Rob Reiner was known for his liberal advocacy and was a Democratic donor. He was also a critic of President Trump, who said today on a post on his social media platform, Truth Social Media, that Rob Reiner was tortured and struggling and that he suffered from, quote, Trump derangement syndrome. Trump's comments drew criticism from Democrats and some Republicans. Also in California, four people have been arrested on charges of plotting New Year's Eve bombings. Law enforcement officials said today that the Four were arrested on Friday in the Mojave Desert as they began testing explosive devices. The Justice Department says they were members of the Turtle Island Liberation Front, an anti government group that the DOJ says has advocated on social media for violence against U.S. officials. The government says one defendant provided an FBI source with plans for planting backpacks loaded with explosives outside five locations, targeting two companies and detonating them on New Year's Eve. A Justice Department official described the companies as Amazon type logistics centers. Minnesota's Twin Cities have taken starkly different paths to tackle soaring housing costs. St. Paul turned to rent control with one of the country's strictest policies. Minneapolis, meanwhile, steered clear of rent control and instead prioritized boosting the supply of housing with rules in 2020 that made it easier to build apartments. The results are now coming into focus. Rebecca Pichotto, who covers the residential rental market and housing policy at the Wall Street Journal, has the story. Rebecca, let's start with St. Paul. In 2022, St. Paul capped annual rent increases at 3% for most apartments. What was the outcome there?

[Rebecca Pichotto]

Development pretty much fell off a cliff. You know, private housing developers as well as their investors and lenders don't really like being restricted on how much rent they can charge. Some developers paused their projects. Lenders and investors started pulling back on potential financing developers that might have looked at downtown empty office buildings and wanted to convert them to new AP they started shelving those plans. And so From January to May 2022, we saw that building permits in St. Paul were 79% lower than the same period the year before.

[Sabrina Siddiqui]

Minneapolis took a different approach, making it easier to build apartments. And one way they did that was removing restrictions that limited housing to single family homes.

[Rebecca Pichotto]

How has that played out in Minneapolis? During that Same January to May 2022 period, building permits were four times as high as the year before. So you saw something of a downtown boom springing up in Minneapolis. There's this one neighborhood called the North Loop, and there's all of this new construction going on and high end apartment buildings line the streets and, you know, cute coffee shops. It's became more of a scene that started, you know, attracting young renters at the same time that St. Paul's building was slowing down. It's worth putting an asterisk next to all of this. This was a tumultuous time for commercial real estate broadly, especially in the Twin Cities. You had the pandemic rattling the office market and there was political unres, the George Floyd protests in Minneapolis. So this was all kind of weighing on the region. But you saw that development in Minneapolis, but in St. Paul, you saw that they didn't find that it worked for their city and they're in fact starting to roll parts of it back. It's not a wholesale rebuke of rent control, but the first attempt didn't necessarily go as planned.

[Sabrina Siddiqui]

And what's the takeaway from housing experts from the Twin City example?

[Rebecca Pichotto]

Housing economists don't like rent control. You know, there is a broader conversation about how we have a housing shortage in the country. To fill that housing shortage, you want to build more housing. And so that was the route that Minneapolis took. But it is worth noting that lower income renters in Minneapolis say that all of this new building doesn't necessarily benefit them. The new apartments skew. Luxury housing experts are still looking at trying to find this balance of building more to boost supply and hopefully bring down rents while also ensuring that when you build more, it doesn't necessarily displace the existing residents who were there.

[Sabrina Siddiqui]

That was the Wall Street Journal's Rebecca Pichotto. Rebecca, thank you.

[Rebecca Pichotto]

Thanks so much for having me.

[Sabrina Siddiqui]

Coming up, why did Jared Kushner back out of a plan to build a Trump hotel in Serbia? That's after the break.

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[Sabrina Siddiqui]

JPMorgan Chase is financing a $7.4 billion deal for a zinc smelter in Tennessee that would produce critical minerals. That's according to people familiar with the matter. The US Government is investing in the smelter, which will be built by Korea Zinc. JP Morgan has committed to financing $1.5 trillion for national security related deals in the next decade. And in corporate news out late today, Ford says it expects to take about $19.5 billion in charges mainly tied to its electric vehicles. Ford has lost $13 billion on its EV business since 2023 and says it will now build up its lineup of gas vehicles and shift to hybrids. It will stop making an EV version of its F150 pickup truck called the Lightning. It will instead make what's known as an extended range version of the truck. Ford says that by 2030, hybrids, EVs and extended range EVs which have gasoline engines, will make up about half its global volume. US Automakers have been abandoning plans to quickly step up an EV future after regulatory changes and lackluster demand from Americans. Ford shares rose about 1.5% in after hours trading. Broader trading was muted, with the Nasdaq finishing the day down 0.6%, while the Dow and S&P 500 ended barely in the red.

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Foreign.

[Sabrina Siddiqui]

Officials say Washington has pledged to protect Ukraine from a future Russian attack as negotiators try to break the deadlock in peace talks. The offer came on the second day of talks in Berlin among the U.S. ukraine and European leaders. It includes U.S. support for European security guarantees and seek Senate backing for Washington's promised role. But it remains unclear to what extent Washington would militarily intervene, and a more difficult dispute over whether Ukraine can keep contested territory in the country remains unresolved. The Trump administration is pushing to finalize a deal by the end of the year, but Ukrainian and European officials doubt it can happen by then. And in a push against Russia, the European Union has sanctioned two oil traders it says have played a major role in facilitating the country's energy exports. It's a big swing at a clandestine market that has bankrolled Moscow's war against Ukraine. Energy exports are also crucial to Russia's economy. The EU blacklisted Etibar Ayub of Azerbaijan and Murtaza Laqhani of Pakistan. Ayyub told the Journal he has never done anything unlawful, while Lakhani said he considers the basis for the measures unfounded and that he would step down from managerial positions at companies he owns. Jared Kushner has withdrawn from a planned Trump branded hotel development in Serbia's capital. The project triggered public protests and a political scandal in the Balkan country. The plan had been for three towers on a Belgrade site damaged during NATO's 1999 bombing campaign. Today, a special prosecutor in Serbia indicted a Serbian cabinet minister and three other officials over their roles in the project. Hours later, Kushner's private equity firm, Affinity Partners, said it was stepping aside out of respect for the people of Serbia. It was an abrupt end to a development the president's son in law had pursued for more than two years. His $4.8 billion firm, Affinity, is largely backed by Middle Eastern governments. It has been involved in deals including the record breaking $55 billion buyout of Electronic Arts and Paramount's hostile bid for Warner Bros. And that's what's news for this Monday afternoon. Today's show was produced by Anthony Bancy with supervising producer Talia Bell. I'm Sabrina Siddiqui for the Wall Street Journal we'll be back with a new show tomorrow morning. Thanks for listening.

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