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Ford posts record $8.2B loss, EV division at center
Ford Motor Company reported a dismal 2025 performance, posting a net loss of $8.2 billion — the largest annual shortfall since the 2008 financial crisis. Much of the damage stems from its electric vehicle (EV) business, which alone accounted for roughly $4.8 billion in losses last year.
What went wrong for Ford's EV push
The recent turmoil in the U.S. EV market exposed vulnerabilities in ambitious electrification plans. Changes to federal EV incentives and shifting policy around the $7,500 tax credit reduced consumer demand and made some models less competitive on price. Ford, an early U.S. legacy automaker to commit heavily to EVs, felt the impact disproportionately.
In December the company announced a strategic retrenchment, including halting production of the popular F-150 Lightning pickup — a symbolic and practical retreat from one of its marquee electric programs.
Key figures
- Total net loss (2025): $8.2 billion
- EV division loss (2025): ~$4.8 billion
- 2026 forecasted additional loss: $4.0–4.5 billion
- Expected breakeven: not before 2029
New direction: cheaper EVs and autonomous focus
Facing tighter margins and weaker incentives, Ford and rival General Motors are pivoting to two priorities: aggressive cost reduction and advanced driver assistance / autonomous features. Their headline project is a planned $30,000 electric car with an 'eyes-off' driving capability aimed for a 2028 launch. The target price would undercut many current EV offerings — Tesla's more affordable models sit around the mid-$30,000s — and is central to Ford's strategy to win back mainstream buyers.
Global pressure from Chinese automakers
Ford's struggles are amplified by intense competition abroad. Chinese manufacturers such as BYD have used state support and scale to offer EVs at very low price points. Although direct imports of Chinese EVs to the U.S. remain constrained, their presence in other markets — including Canada, which recently approved imports — and aggressive global pricing helped BYD surpass Ford in worldwide sales in 2025.
Reports also indicate Ford is in talks with China's Geely for potential collaboration to narrow the price and technology gap.
'We are tempering our EV ambitions to match market realities while pushing forward on affordable, autonomous-capable vehicles,' a company executive summarized in internal briefings.
Market implications and what to watch
For car buyers and industry watchers, several trends are important:
- Expect more consolidation of EV models and cost-driven platform sharing.
- Watch the $30k EV program and its claimed 'eyes-off' capability — if delivered, it could reset pricing expectations.
- Monitor partnerships or investments with Asian automakers; they may bring fast access to lower-cost components and software.
Ford's 2025 losses underline how quickly EV economics can shift. The automaker's next moves — trimming costs, retooling factories, and delivering a genuinely affordable EV with advanced driver assistance — will determine whether it can reclaim momentum against well-capitalized global rivals.
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