Ford has written off $1.9bn as it cancelled plans for an all-electric large SUV in the US, opting to produce a hybrid version instead in the latest sign of western carmakers struggling to make profitable electric cars.
The US carmaker said on Wednesday that it would not be able to reach a profit on the electric SUV within a year, its measure of whether a new car is viable, citing the stiff competition from Chinese manufacturers. It will initially write off the cost of $400m (£300m) in tooling for the vehicle, plus another $1.5bn (£1.15bn) in extra costs in the future.
Ford also said it would delay the successor to its F-150 Lightning electric pickup truck until 2027, after initially targeting a launch next year.
I mean, is a expense and no revenue, you only pay taxes when you make money
Ahh. I thought there might be some sort of incentive like how Warner bros axed a fully finished movie because they could use the write off
Even that was only worth doing because of special tax rules for when companies are sold.
The fact that it’s even remotely worth it is criminal (imo)