Ford’s $11.6 Billion Loss Follows Electric Vehicle Strategy Shift

Ford’s recent announcement reflects a significant shift in its electric vehicle strategy, resulting in substantial financial losses. The company’s losses totaled US$8.2 billion (approximately A$11.6 billion) last year, a startling increase compared to its previous annual losses of US$5.9 billion (A$8.3 billion). A large portion of this loss—about US$4.8 billion (A$6.8 billion)—was linked to the Ford Model e EV division.

Financial Overview

Initially, Ford anticipated short-term losses of up to US$19.5 billion (A$27.6 billion) due to its strategic shift in electric vehicle production. Expectations of continued financial challenges persist until at least 2029.

Changes in Electric Vehicle Production

• The F-150 Lightning, a pivotal model for Ford, faced production delays and supply chain issues, leading to customer dissatisfaction and its cancellation in December.
• As a result, Ford has also withdrawn plans for a second-generation EV model related to the F-150 Lightning, instead opting for a range-extended version.
• Production plans for a new electric commercial van intended for Europe have also been scrapped.

In an effort to adapt, Ford will maintain its existing lineup of electrified vans in Europe. Additionally, it plans to replace the North American E-Transit van with a new, more affordable commercial vehicle that will be available in petrol and hybrid options.

Future Production Plans

Ford is set to modify its ‘BlueOval City’ facility in Tennessee. Rather than become a hub for electric vehicles as previously planned, it will now focus on producing a new range of pickups starting in 2029.

Company Revenue and Vehicle Deliveries

Despite its losses, Ford reported a total revenue of US$187.3 billion (A$264.9 billion) for the year, a 1% rise from 2024. The company successfully delivered 4.395 million vehicles globally in 2025.

Jim Farley, Ford’s president and CEO, commented on the company’s performance, stating, “We improved our core business and execution, made significant progress on our controllable areas, and made critical strategic decisions.”

Looking Ahead

Ford is also moving forward with plans to introduce a ‘Universal EV’ platform in 2027. This platform is set to debut with a Ranger-sized pickup and expand to include a family of smaller, efficient, and affordable electric vehicles.