Ford CEO admits that the customer has spoken…
Ford on Tuesday posted its largest quarterly loss since 2008 amid losses in the automaker’s electric vehicle (EV) division, as nicely as the influence of tariffs and a fire that impacted an aluminum provider.
The Detroit automaker reported a fourth quarter internet loss of $11.1 billion after beforehand disclosing large writedowns to its EV packages, which the company is realigning in response to lower-than-expected client demand and altering 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 misplaced $4.8 billion on EVs last 12 months and initiatives 2026 will deliver losses in the vary of $4 billion to $4.5 billion, including that the division will continue shedding money for at least the next two years. Ford CFO Sherry House said during the earnings call that the automaker is focusing on break-even for its EV unit in 2029.
Ford also announced a bigger than beforehand reported financial hit from tariff prices, as the company misplaced an extra $900 million after the Trump administration said in December that a tariff-relief program would only be retroactive to November, slightly than back to May as initially anticipated.
Jim Farley, CEO of Ford talks on stage during the Red Bull Racing season launch at Michigan Central Station on January 15, 2026 in Detroit, Michigan. Getty Images
The automaker’s tariff invoice last 12 months was about $2 billion and Ford indicated it expects tariff prices shall be roughly the same stage this 12 months.
Ford was more reliant on imported aluminum due to a pair of fires that impacted an aluminum plant close to Oswego, New York, which isn’t anticipated to be absolutely operational again until someday between May and September.
Drivers charge their Teslas in Fountain Valley, CA, on Wednesday, March 20, 2024. MediaNews Group via Getty Images
Despite those headwinds, Ford’s fourth quarter income of $45.9 billion beat analysts’ expectations. The company narrowly missed its revised steering of $7 billion, as it posted earnings before curiosity and taxes of $6.8 billion for the 12 months.
Late last 12 months, Farley announced the company is cutting manufacturing of the electric F-150 Lightning and refocusing its investment on hybrid automobiles and reasonably priced EVs, ensuing in a $19.5 billion charge on its EV property and product roadmap.
He said the transfer would enable the company to refocus investments in increased margin areas like American-built vehicles, vans and hybrids across its lineup, as nicely as more reasonably priced EVs.
A Ford F-150 Lightning is obtainable for sale at a Ford dealership on December 15, 2025 in Chicago, Illinois. Getty Images
The company is planning a $30,000 EV platform and has signaled it is going to start rolling out an electric pickup on that platform next 12 months. Ford also plans to pursue focused partnerships in sure markets and investments in hybrid applied sciences.
“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.
GWN contributed to this report.
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