Ford’s EV Overhaul Triggers Largest Quarterly Loss Since 2008
Ford Motor Company has reported its financial results for the fourth quarter and full year of 2025. Despite exceeding expectations in revenue, the company faced significant challenges with its electric vehicle (EV) initiatives, leading to substantial financial losses.
Ford’s Fourth Quarter and Annual Performance
In Q4 2025, Ford’s total US sales climbed by 6% to over 2.2 million units. However, its electric vehicle sales experienced a decline. The company sold just over 84,000 all-electric vehicles last year, marking a 14.7% decrease from 2024. In contrast, General Motors (GM) sold 169,887 EVs, achieving a remarkable 48% increase and more than doubling Ford’s figures.
Strategic Shift in EV Plans
In December 2025, Ford outlined its revamped Ford+ strategy, which focuses on developing new hybrids and more affordable EVs. This strategy includes launching five vehicles under $40,000, culminating in a new midsize electric pickup anticipated for 2027.
- Plans to allocate investments towards hybrid and plug-in hybrid models.
- A focus on the Universal EV (UEV) platform for future vehicle launches.
- Production of the all-electric F-150 Lightning has been halted, with intentions to introduce an extended-range electric vehicle by 2027.
Financial Impact
As a result of its updated electric vehicle strategy, Ford is poised to record approximately $19.5 billion in special charges, primarily in Q4 2025. The company announced a net loss of $11.1 billion for the fourth quarter, the worst performance since 2008, and a yearly net loss of $8.2 billion.
Special Charges Breakdown
During Q4, Ford incurred special charges totaling $14.4 billion, which were categorized as follows:
- $10.7 billion from Model e Asset Impairment and EV Program Cancellations.
- $3.2 billion from the BlueOval SK joint venture disposition.
- $800 million from the cancellation of a planned three-row electric SUV.
Future Outlook and Earnings Expectations
Looking ahead, Ford’s Model e division reported an EBIT loss of $1.2 billion in Q4, accumulating a total loss of $4.8 billion for 2025. However, Ford aims to enhance its EV business by leveraging strategic partnerships to streamline costs and accelerate the release of new models.
Moreover, Ford has initiated a collaboration with Renault to develop cost-effective EVs for the European market based on the Ampere platform. In terms of EBIT predictions for 2026, the company anticipates an adjusted EBIT between $8 billion and $10 billion. This is separated by segments as follows:
- Ford Pro: $6.5 billion to $7.5 billion
- Ford Blue: $4.0 billion to $4.5 billion
- Ford Model: EBIT loss of $4 billion to $4.5 billion
Ford’s recent overhaul emphasizes a cautious approach towards electric vehicles while aiming for profitability in the long term. More updates will follow from Ford’s earnings call at Filmogaz.com.
