TL;DR
Consumer demand for electric vehicles has slowed and governments in the US and Europe are easing transition policies. The EU recently dropped an earlier ban on petrol-car sales from 2035, and Ford announced a $19.5bn writedown as it rethinks its EV plans.
What happened
Western automakers face a recalibration of the electric-vehicle transition as both market and policy momentum wane. The piece reports that customers have not adopted EVs as quickly as forecasts assumed, and that authorities in America and Europe have stepped back from aggressive deadlines intended to speed electrification. On December 16th the EU abandoned an earlier ban on the sale of petrol cars from 2035. A day earlier, Ford revealed it would write down $19.5bn of asset value while reassessing its EV strategy. The article argues that pausing or reversing course on electrification poses risks for Western carmakers, noting the policy shifts and recent large writedown as immediate indicators of a more uncertain path for the industry.
Why it matters
- Regulatory changes can upend manufacturers' long-term planning and investment assumptions.
- Large writedowns, like Ford’s $19.5bn charge, signal material financial consequences from strategic shifts.
- Slower-than-expected consumer uptake undermines timelines that guided factory, supplier and R&D commitments.
- A less predictable policy environment raises the cost of transitioning vehicle portfolios and could reshape competition.
Key facts
- The article reports that consumer adoption of electric vehicles has lagged initial expectations.
- Governments in both America and Europe are described as pulling back on measures to accelerate the EV transition.
- On December 16th the EU dropped an earlier ban on the sale of petrol cars from 2035.
- A day earlier, Ford announced a $19.5bn writedown as it rethinks its EV strategy.
- The article warns that a retreat from electrification could be hazardous for Western carmakers.
- The story appeared in the Business section under the headline 'Cruising for a bruising' in the December 20th 2025 edition (original online dated Dec 17th, 2025).
What to watch next
- Whether the EU will adopt new or alternative regulatory measures in place of the dropped 2035 ban — not confirmed in the source.
- If other major automakers follow Ford with large writedowns or strategic reversals — not confirmed in the source.
- Trends in consumer EV adoption over coming quarters and how they affect production plans — not confirmed in the source.
Quick glossary
- Electric vehicle (EV): A vehicle powered wholly or primarily by one or more electric motors using energy stored in rechargeable batteries.
- Write-down: An accounting adjustment that reduces the recorded value of an asset when its market value has fallen below its carrying amount.
- Internal combustion engine (petrol car): A vehicle whose propulsion relies on burning fuel such as petrol or diesel in an engine to produce power.
- Regulatory rollback: The removal or weakening of government rules or targets that had previously imposed requirements or deadlines on an industry.
Reader FAQ
What specific action did the EU take?
The EU dropped an earlier ban on the sale of petrol cars from 2035.
Why did Ford take a $19.5bn writedown?
Ford said the writedown accompanied a rethink of its EV strategy.
Are consumers rejecting EVs outright?
The source says customers are not embracing EVs as fast as once anticipated, but does not claim outright rejection.
Will retreating from EVs save Western carmakers?
Not confirmed in the source.
Business | Cruising for a bruising Retreating from EVs could be hazardous for Western carmakers Governments are tempting a shift back to petrol Share photograph: getty images Dec 17th 2025…
Sources
- Retreating from EVs could be hazardous for Western carmakers
- Retreating From EVs Could Be Hazardous For Western …
- US, Europe Retreat From Electric Cars Risks Ceding Race …
- Retreating from EVs could be hazardous for Western …
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