Ford presses for fast sale, says it’s most-exposed carmaker

Ford presses for fast sale, says it’s most-exposed carmaker

Ford Faces Financial Pressures Amid Strategic Shifts and Supply Chain Challenges

Ford Motor Co. reported a record $8.2 billion net loss for 2025, marking its worst annual financial performance since the 2008 financial crisis. The losses stemmed from strategic miscalculations in its electric vehicle (EV) transition, including $19.5 billion in special charges tied to canceled programs and asset impairments. The automaker also faced $2 billion in tariff-related costs and supply chain disruptions, including fires at aluminum supplier Novelis, which reduced F-150 production by 100,000 units and created an additional $2 billion headwind.

To address these challenges, Ford has scaled back its EV ambitions, shifting focus to more affordable models built on a flexible architecture. CEO Jim Farley announced plans for a midsize electric pickup starting at $30,000 and a broader family of lower-cost EVs, alongside hybrid and internal combustion engine (ICE) vehicles according to company announcements. The company also pivoted its marketing strategy in 2026, emphasizing vehicle "capability" across off-road, adventure, and work-focused segments, while avoiding high-cost platforms like the Super Bowl.

Inventory constraints for the F-150, Ford's top-selling model, have intensified pricing pressures. Reduced supply—due to Novelis production delays—has tightened dealer inventory by 22% compared to late 2025, with analysts predicting higher transaction prices until mid-2026. Meanwhile, Ford's overall revenue reached a record $187.3 billion in 2025, driven by strong sales in core segments and its profitable Ford Pro commercial vehicle division.

Despite these efforts, Ford remains vulnerable to market shifts. Its revised EV strategy, while cost-focused, reflects a retreat from earlier aggressive electrification goals. The company's ability to stabilize profitability will depend on resolving supply chain bottlenecks, managing pricing dynamics, and aligning production with evolving consumer demand. For now, Ford's financial exposure underscores the risks of rapid industry transformation in an increasingly volatile automotive landscape.