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Ford’s Financial Troubles: A Record Loss Since the Global Financial Crisis

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Ford posts its biggest loss since the Global Financial Crisis

Ford experienced a significant setback in 2025, reporting a loss of US$8.2 billion (A$11.5 billion), marking its worst performance since 2008 and the third full-year loss in the last six years, despite achieving record revenue.

The automaker confirmed that its Model e electric vehicle (EV) division recorded a substantial EBIT loss of US$4.8 billion (A$6.8 billion) in 2025. This loss was exacerbated by a write-down of US$19.5 billion (A$27.6 billion) on its EV investments, leading to the cancellation of the electric Ford F-150 Lightning and the delay of other planned EV models.

Additionally, Ford faced challenges due to the introduction of import tariffs in the US in April 2025, resulting in additional costs of US$2 billion (A$2.82 billion) due to parts tariffs and country-specific reciprocal and retaliatory tariffs.

Despite these financial difficulties, Ford managed to achieve record revenue of US$187.3 billion (A$264.2 billion). The company also implemented cost-cutting measures, reducing costs by US$1.5 billion (A$2.12 billion) in 2025 and aiming for further cuts of US$1 billion (A$1.41 billion) in 2026.

Ford’s CEO, Jim Farley, acknowledged the challenges faced by the company in 2025 but expressed optimism for the future. He highlighted the progress made in improving the core business operations, reducing costs, and enhancing product quality. Farley outlined the company’s strategic decisions and goals, aiming for an adjusted EBIT margin of eight percent by 2029.

Looking ahead, Ford plans to capitalize on the growing popularity of hybrid models in the US and develop extended-range electric vehicle (EREV) technology for upcoming models like the F-150 Lightning. The company is also exploring the production of EVs in collaboration with Chinese brands to mitigate tariff costs in Europe.

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In conclusion, despite the financial losses and challenges faced in 2025, Ford remains committed to strengthening its position in the automotive market and delivering innovative and competitive products to consumers.

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