ford has announced a loss of US$8.2 billion (A$11.5 billion) for the full calendar year 2025, its worst result since 2008 and its third full-year loss in the last six years – despite record sales.
Ford confirmed that its Model E electric vehicle (EV) division posted an EBIT (earnings before interest and taxes) loss of US$4.8 billion (AUD6.8 billion) in 2025, after already confirming late last year that it would take a write-down on its EV investments of US$19.5 billion (AUD27.6 billion).
This resulted in the cancellation of the electric Ford F-150 Lightning (which is not officially sold in Australia) and delayed other planned EV models.
In addition, the imposition of import tariffs in the US from April 2025 – and subsequent additional parts tariffs and country-specific “reciprocal” and “retaliatory” tariffs – cost the automaker US$2 billion (AUD2.82 billion).
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Ford said the US federal government’s tariff change in December 2025 meant the automaker would not be able to claim expected offsets, making tariff costs US$900 million (A$1.27 billion) higher than previously forecast.
Chief Financial Officer Sherry House said the company expects to pay another $2 billion (A$2.82 billion) in customs-related costs in 2026, while it expects to lose between $4 billion and $4.5 billion (A$5.6 billion to A$6.35 billion) on electric vehicles this year.
Despite the loss, Ford posted record sales of US$187.3 billion (A$264.2 billion), driving its share price higher, while US union workers will continue to benefit from a profit share of US$6,780 (A$9,562), although down from last year’s US$10,200 (A$14,386).
The Ford F-Series was the best-selling vehicle range in the US, displacing the Chevrolet Silverado and Toyota RAV4, while the Ford Ranger took the top spot in Australia for the third consecutive year.
The company cut costs by $1.5 billion (A$2.12 billion) in 2025 and expects to achieve additional $1 billion (A$1.41 billion) in cost reductions in 2026.
“Ford delivered a strong 2025 in a dynamic and often volatile environment,” Ford CEO Jim Farley said in a statement.
“We have improved our core business and execution, made significant progress in the businesses we control – reducing material and warranty costs and making real quality advances – and made difficult but important strategic decisions that have positioned us for a stronger future.”
“In the future, we will continue to build on our strong foundation in order to achieve our goal of an adjusted EBIT margin of eight percent by 2029.”
While the automaker deals with electric vehicle costs and tariffs, it wants to capitalize on the increasing popularity of hybrid models in the U.S. and is working on extended-range electric vehicle (EREV) technology for upcoming models such as the new F-150 Lightning.
It was also revealed that the company is working on a cheaper “universal” electric pickup alongside five new “affordable” models, after the company discontinued its Escape SUV in the US, leaving a gap in its product range.
Ford is also in talks with several Chinese brands about producing electric vehicles in shared factories to reduce tariff costs in Europe, where the automaker has also pledged to “expand its passenger car business.”
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