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Ford on Tuesday posted its largest quarterly loss since 2008 amid losses in the automaker’s electric vehicle (EV) division, as well as the impact of tariffs and a fire that impacted an aluminum supplier.
The Detroit automaker reported a fourth quarter net loss of $11.1 billion after previously disclosing large writedowns to its EV programs, which the company is realigning in response to lower-than-expected consumer demand and changing federal subsidies.
“I think the customer has spoken,” Ford CEO Jim Farley said on the company’s earnings call. “That’s the punchline.”
The company lost $4.8 billion on EVs last year and projects 2026 will bring losses in the range of $4 billion to $4.5 billion, adding that the division will continue losing money for at least the next two years. Ford CFO Sherry House said during the earnings call that the automaker is targeting break-even for its EV unit in 2029.
Ford also announced a larger than previously reported financial hit from tariff costs, as the company lost an additional $900 million after the Trump administration said in December that a tariff-relief program would only be retroactive to November, rather than back to May as originally anticipated.
FORD CUTS ELECTRIC F-150 LIGHTNING PRODUCTION, TAKES $19.5B CHARGE IN STRATEGIC SHIFT
The automaker’s tariff bill last year was about $2 billion and Ford indicated it expects tariff costs will be roughly the same level this year.
Ford was more reliant on imported aluminum due to a pair of fires that impacted an aluminum plant near Oswego, New York, which isn’t expected to be fully operational again until sometime between May and September.
Despite those headwinds, Ford’s fourth quarter revenue of $45.9 billion beat analysts’ expectations. The company narrowly missed its revised guidance of $7 billion, as it posted 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. | 13.63 | +0.04 | +0.33% |
Late last year, Farley announced the company is cutting production of the electric F-150 Lightning and refocusing its investment on hybrid vehicles and affordable EVs, resulting in a $19.5 billion charge on its EV assets and product roadmap.
He said the move would allow the company to refocus investments in higher margin areas like American-built trucks, vans and hybrids across its lineup, as well as more affordable EVs.
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The company is planning a $30,000 EV platform and has signaled it will start rolling out an electric pickup on that platform next year. Ford also plans to pursue targeted partnerships in certain markets and investments 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 on a call Tuesday.
Reuters contributed to this report.
