Ford Reports Major Quarterly Loss

On Tuesday, Ford announced its largest quarterly loss since the 2008 financial crisis, attributed mainly to difficulties within its electric vehicle (EV) division.

The company indicated that weaker-than-anticipated demand for EVs was a key driver behind its fourth-quarter net loss of $11.1 billion. Reports suggest that tariffs and a fire affecting one of its aluminum suppliers further compounded the issues.

“I think our customers have spoken,” Ford CEO Jim Farley remarked during an earnings call.

In 2025, the EV unit recorded a staggering $4.8 billion loss, with projections for similar deficits in 2026. The outlook suggests that this trend may continue for another two years. Ford Chief Financial Officer Shelly House mentioned that they plan to break even in the EV sector by 2029.

Additionally, Farley shared that Ford intends to reduce production of the Ford F-150 Lightning and shift focus towards more budget-friendly EV and hybrid models. This realignment aims to allow investments in higher-margin offerings like U.S.-made trucks, vans, and hybrids.

There are reports of Ford developing a $30,000 EV platform, which includes an electric pickup truck.

Another financial concern highlighted in the report revolves around tariffs. Ford faced a $900 million loss following the Trump administration’s decision in December to make the auto parts tariff relief program retroactive to November, rather than May as initially planned. The company projects that its tariff expenses for 2025 will reach about $2 billion, with similar figures expected for 2026.

A fire at the New York aluminum supplier Novelis has also heightened the need for aluminum imports, further complicating the situation for Ford. The plant is not anticipated to resume full operations until mid-2026.