Ford Motor predicted losses of up to $5.5 billion in electric and software operations this year on Wednesday. This is a similar loss to last year and a sign of serious difficulties in reducing the costs of battery-powered models.
Automakers had forecast overall profitability in 2025, but even that was lower than in 2024. Net income for the fourth quarter reported net income of $1.8 billion from a loss of $500 million in the same quarter last year, as pension-related expenses were measured. About the results.
The company's shares fell nearly 5% in after-hours trading.
Ford CEO Jim Farley is trying to track a choppy 2024 with more consistent results.
The Dearborn, Michigan automaker is working to overcome sustained quality issues and raise the stock price, which fell 18% last year. We are currently facing uncertainty about the threatened tariffs of President Donald Trump in Mexico and Canada. If implemented, this measure could increase the cost of raw materials for automakers and undermine sales demand.
Farley told analysts on a conference call that Ford could survive weeks of tariffs, but if 25% of his duties in Mexico and Canada lasts for a long time, he would say “it will have a huge impact on our industry, billions and billions.” He said the dollar's industry profits have been wiped out, and it will have a negative impact on American jobs.”
Farley added that he believes Trump aims to strengthen the automotive industry.
The company's fourth quarter revenue exceeded the $43 billion analyst's expectations, according to LSEG data. The earnings per share adjusted for 39 cents earnings per share also won analyst forecasts of 33 cents per share.
Last year, Farley significantly reduced its EV plans, xiating its planned three-row electric SUV, delaying the launch of its next-generation electric F-150 Lightning truck. The company is leaning heavily towards the California Skunkworks team, which is developing California's Skunkworks team from scratch, with the team's first affordable vehicle being a mid-sized electric pickup arriving in 2027. It says it will become.
Ford will not be rolling out new EVs next year, but in contrast to General Motors, which has introduced new models of Denki and has increased sales of Blazers and Equinox EVs, but Farley is not rolling out by GM. It leaps heavily towards a hybrid. Until 2027.
Ford's EV loss includes significant investments in future models, increasing volumes while reducing costs by $1.4 billion, says Ford's next Chief Financial Officer, Shelley House. I said.
Ford sold about twice the number of hybrids compared to last year's EVs, selling 187,426 hybrids and 97,865 EVs.
The automaker's multi-powertrain approach “should help reduce the negative impact on sales of the elimination of federal EV tax credits,” as opposed to companies such as GM, who bet very aggressively on battery EVs. said Garrett Nelson, analyst at CFRA. the study.
The Trump administration is turning its eyes to remove the $7,500 consumer tax credit available for certain EVs.
The company predicted low profits before interest and taxes in 2025, with interest and $7 billion to $8.5 billion. After narrowing down to the end of last year, I recorded my annual EBIT and then met the 2024 annual guidance.
Among the challenges facing Ford this year is the tougher pricing environment, with automakers planning to lower industry prices by around 2%.
Tariff confusion
Ford is the first major automaker to report revenue as Trump signed an executive order on Saturday, saying the US would do so. This week we will impose a 25% tariff on goods from Mexico and Canadawhich will affect Ford and Crosstown rivals GM and Stellantis. But Trump delayed the decision for a month after discussions with leaders from across the country.
The automaker did not consider tariffs on the annual outlook, executives said.
Farley told analysts that the tariff policies implemented must be “comprehensive for our industry,” adding that Asian rivals could import vehicles into the US “without progressive tariffs.”
Mexican tariffs affect Ford's popular Maverick pickup truck, one of the Broncosports, one of the most affordable vehicles, as well as Mustang Mach-E SUVs assembled with Mexican plants. Analysts say Ford is the least exposed to customs duties for the big three Detroit automakers. GM and Stellantis produce more profitable vehicles outside the US.
Last month, executive chair Bill Ford told reporters that Trump called him “suddenly.”
“He understands our industry and the importance of Ford in our industry,” Bill Ford said, referring to Trump. The Ford chair added that he “is very confident that Ford has a voice and a seat at the table.”
