Ford Reports $11.1B Quarterly Loss Due to EV Expenses, Marking Its Worst Quarter Since 2008
Valvoline CEO Lori Flees discusses the used car boom, decreased interest in electric vehicles, and more on ‘The Claman Countdown.’
Ford has reported its largest quarterly loss since 2008, primarily driven by setbacks in its electric vehicle (EV) division. The automaker also faced challenges from tariffs and a fire that affected an aluminum supplier.
In its fourth quarter, Ford disclosed a staggering net loss of $11.1 billion, following significant writedowns in its EV programs. These adjustments come as the company realigns its strategies in response to lower-than-expected consumer demand and shifting federal subsidies.
“I think the customer has spoken,” Ford CEO Jim Farley stated during the earnings call. “That’s the punchline.”
Last year, Ford incurred losses of $4.8 billion on its EVs and anticipates further losses of $4 billion to $4.5 billion in 2026. The company expects its EV division to remain unprofitable for at least the next two years, with CFO Sherry House aiming for break-even by 2029.
Additionally, Ford revealed a larger-than-expected financial impact from tariff costs, suffering an extra $900 million loss after the Trump administration announced that a tariff-relief program would only be retroactive to November, rather than back to May as initially planned.
FORD CUTS ELECTRIC F-150 LIGHTNING PRODUCTION, TAKES $19.5B CHARGE IN STRATEGIC SHIFT
Ford became famous for its revolutionary assembly line, introduced with the Model T in 1908. (Jeff Kowalsky/Bloomberg via Getty Images)
Ford’s total tariff bill last year reached approximately $2 billion, and the company expects similar costs for the current year. The automaker has been increasingly reliant on imported aluminum due to fires that disrupted an aluminum plant near Oswego, New York, which is not expected to resume full operations until between May and September.
Despite these challenges, Ford’s fourth-quarter revenue of $45.9 billion exceeded analysts’ expectations. The company narrowly missed its revised guidance of $7 billion, reporting earnings before interest and taxes of $6.8 billion for the year.
REGULATORS EXPAND PROBE INTO NEARLY 1.3M FORD F-150 PICKUP TRUCKS OVER TRANSMISSION ISSUES
| Ticker | Security | Last | Change | Change % |
|---|---|---|---|---|
| F | FORD MOTOR CO. | 13.57 | -0.01 | -0.11% |
In a strategic pivot announced late last year, Farley revealed that Ford would cut production of the electric F-150 Lightning and shift its focus towards hybrid vehicles and affordable EVs. This decision resulted in a $19.5 billion charge on its EV assets and product roadmap.
Farley emphasized that this shift would enable the company to concentrate investments in higher-margin areas, including American-built trucks, vans, hybrids, and more affordable EVs across its lineup.
FORD CEO HAILS TRUMP FUEL STANDARDS RESET AS A ‘VICTORY’ FOR AFFORDABILITY AND COMMON SENSE
Ford CEO Jim Farley previously announced EV writedowns and strategic pivot. (Emily Elconin/Bloomberg via Getty Images)
Looking ahead, Ford is developing a $30,000 EV platform and plans to introduce an electric pickup on that platform next year. The company is also pursuing targeted partnerships in select markets and investing in hybrid technologies.
“I do believe this is the right allocation of capital. It’s a combination of partnerships where it makes sense, efficient partial electrification investments where we have revenue power, and really hitting the EV market in the core,” Farley told analysts during a recent call.
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Reuters contributed to this report.
Valvoline CEO Lori Flees discusses the used car boom, decreased interest in electric vehicles, and more on ‘The Claman Countdown.’
Ford has reported its largest quarterly loss since 2008, primarily driven by setbacks in its electric vehicle (EV) division. The automaker also faced challenges from tariffs and a fire that affected an aluminum supplier.
In its fourth quarter, Ford disclosed a staggering net loss of $11.1 billion, following significant writedowns in its EV programs. These adjustments come as the company realigns its strategies in response to lower-than-expected consumer demand and shifting federal subsidies.
“I think the customer has spoken,” Ford CEO Jim Farley stated during the earnings call. “That’s the punchline.”
Last year, Ford incurred losses of $4.8 billion on its EVs and anticipates further losses of $4 billion to $4.5 billion in 2026. The company expects its EV division to remain unprofitable for at least the next two years, with CFO Sherry House aiming for break-even by 2029.
Additionally, Ford revealed a larger-than-expected financial impact from tariff costs, suffering an extra $900 million loss after the Trump administration announced that a tariff-relief program would only be retroactive to November, rather than back to May as initially planned.
FORD CUTS ELECTRIC F-150 LIGHTNING PRODUCTION, TAKES $19.5B CHARGE IN STRATEGIC SHIFT
Ford became famous for its revolutionary assembly line, introduced with the Model T in 1908. (Jeff Kowalsky/Bloomberg via Getty Images)
Ford’s total tariff bill last year reached approximately $2 billion, and the company expects similar costs for the current year. The automaker has been increasingly reliant on imported aluminum due to fires that disrupted an aluminum plant near Oswego, New York, which is not expected to resume full operations until between May and September.
Despite these challenges, Ford’s fourth-quarter revenue of $45.9 billion exceeded analysts’ expectations. The company narrowly missed its revised guidance of $7 billion, reporting earnings before interest and taxes of $6.8 billion for the year.
REGULATORS EXPAND PROBE INTO NEARLY 1.3M FORD F-150 PICKUP TRUCKS OVER TRANSMISSION ISSUES
| Ticker | Security | Last | Change | Change % |
|---|---|---|---|---|
| F | FORD MOTOR CO. | 13.57 | -0.01 | -0.11% |
In a strategic pivot announced late last year, Farley revealed that Ford would cut production of the electric F-150 Lightning and shift its focus towards hybrid vehicles and affordable EVs. This decision resulted in a $19.5 billion charge on its EV assets and product roadmap.
Farley emphasized that this shift would enable the company to concentrate investments in higher-margin areas, including American-built trucks, vans, hybrids, and more affordable EVs across its lineup.
FORD CEO HAILS TRUMP FUEL STANDARDS RESET AS A ‘VICTORY’ FOR AFFORDABILITY AND COMMON SENSE
Ford CEO Jim Farley previously announced EV writedowns and strategic pivot. (Emily Elconin/Bloomberg via Getty Images)
Looking ahead, Ford is developing a $30,000 EV platform and plans to introduce an electric pickup on that platform next year. The company is also pursuing targeted partnerships in select markets and investing in hybrid technologies.
“I do believe this is the right allocation of capital. It’s a combination of partnerships where it makes sense, efficient partial electrification investments where we have revenue power, and really hitting the EV market in the core,” Farley told analysts during a recent call.
GET FOX BUSINESS ON THE GO BY CLICKING HERE
Reuters contributed to this report.
