Ford posted an $8.2 billion net loss for 2025, citing electric vehicle struggles, tariffs, and supply-chain disruptions
Ford Motor Company has reported that its electric vehicle division posted a $4.8 billion loss in 2025, warning it will continue losing money for at least two more years. Broader business strains pushed the US automaker to an $11.1 billion fourth‑quarter net loss.
The Michigan-based auto giant reported a full-year net loss of $8.2 billion for 2025, following a $19.5 billion EV-related writedown in December, even as it expects overall profitability to rebound in its broader business this year.
“We are now targeting break-even around 2029,” Ford’s chief financial officer, Sherry House, said on Tuesday during a conference call to discuss the company’s financial results.
The car maker’s adjusted fourth-quarter profit fell to $1 billion in 2025, down $1.1 billion from a year earlier, as tariffs and supply-chain issues hit the automaker.
Two factory fires at Ford’s key aluminum supplier and an unexpected $900 million in tariffs – after the administration of US President Donald Trump limited a relief program’s retroactive period to November instead of May – pushed total tariff costs for the year to $2 billion. Ford expects similar charges in 2026, House explained.
The aluminum plant near Oswego, New York, which suffered two major fires last year, is now expected to be fully operational only between May and September – a delay that has weighed on Ford’s results more than anticipated.
Gains in traditional vehicles and commercial operations helped cushion the blow from the EV division’s loss.
The company said it expects adjusted profits of $8 billion to $10 billion in 2026, powered by strong US sales of pickup trucks and SUVs.
The automaker’s electric “Model e” division, however, is forecast to continue generating losses of up to $4.5 billion for the third straight year.
US automakers are scrambling to catch up with cheaper, faster Chinese EV rivals. Ford spun off its electric division from its Michigan base to speed up design and production, but even as it focuses on the EV pickup, the company wrote down $19.5 billion after scrapping earlier programs.
General Motors and Stellantis face similar hits, with $7.6 billion and $26.5 billion in EV-related charges, underscoring the challenge of competing with Chinese manufacturers that bring new models to market in roughly half the time.
