Ford Motor Company reported a full-year net loss of $8.2 billion for 2025, driven by significant challenges in its electric vehicle division and external economic pressures. The U.S. automaker’s electric “Model e” unit alone lost $4.8 billion, marking the third consecutive year of substantial deficits in that segment. Company executives indicated these EV losses are expected to continue, with the division not projected to reach break-even until around 2029.
The annual loss followed a staggering $19.5 billion writedown on EV assets in December, reflecting a strategic pivot after scrapping earlier programs. Despite this, Ford’s traditional vehicle and commercial operations provided some offset, though broader business strains led to an $11.1 billion net loss in the fourth quarter. Adjusted quarterly profit fell to $1 billion, down $1.1 billion from the prior year.
Key factors behind the poor performance included tariffs and supply-chain disruptions. Two major fires at a critical aluminum supplier in Oswego, New York, delayed full operational recovery until between May and September 2026, exacerbating cost pressures. Additionally, an unexpected $900 million in tariffs—following a U.S. policy change that limited retroactive relief—contributed to total tariff costs reaching $2 billion for the year, with similar charges anticipated in 2026.
Despite the EV division’s ongoing struggles, Ford forecast improved overall profitability for 2026, projecting adjusted earnings of $8 billion to $10 billion. This optimism is anchored on strong anticipated sales of pickup trucks and SUVs in the United States.
The automaker’s experience highlights a broader industry struggle to compete with Chinese electric vehicle manufacturers, who are noted for bringing new models to market in roughly half the time of their U.S. counterparts. In response, Ford separated its EV division from its Michigan headquarters to accelerate design and production. However, the rapid competitive pace has led to major financial reassessments across the sector. General Motors and Stellantis reported EV-related charges of $7.6 billion and $26.5 billion, respectively, underscoring the scale of the challenge facing traditional automakers during the transition to electric mobility.
Ford’s path forward relies on balancing its profitable core combustion-engine business with the costly but necessary development of a competitive EV portfolio, all while navigating volatile trade policies and supply-chain instability. The company’s ability to meet its 2029 EV break-even target will be closely watched as a benchmark for the industry’s electric transition.
