News
Ford Forecasts Lower Earnings and Rising EV Losses Amid Cost Challenges
Ford Motor Co. has issued a cautious earnings outlook for 2025, citing persistent cost challenges and continued losses in its electric vehicle (EV) division. The automaker expects full-year adjusted pretax income to range between $7 billion (€6.8 billion) and $8.5 billion (€8.2 billion), a decline from $10.2 billion (€9.8 billion) in 2024.
Ford attributed the weaker forecast to “headwinds related to market factors” as it struggles with high warranty expenses and sluggish cost-cutting efforts. In the third quarter of 2024, the company incurred a $1 billion (€960 million) accounting charge to write down assets from the cancellation of a planned three-row electric SUV.
EV Losses Weigh on Ford’s Finances
Ford’s electric vehicle division, Model e, posted a full-year loss of $5.08 billion (€4.9 billion) in 2024, with revenue plunging 35% to $3.9 billion (€3.8 billion). The company anticipates even greater losses in 2025, estimating a shortfall between $5 billion (€4.8 billion) and $5.5 billion (€5.3 billion).
Despite these setbacks, Ford highlighted $1.4 billion (€1.35 billion) in cost improvements within its EV segment while ramping up investments in new battery plants and future electric models.
Challenges Across Petrol and Hybrid Vehicle Units
Ford also painted a pessimistic outlook for its other divisions, including Ford Pro (commercial vehicles) and Ford Blue (petrol and hybrid vehicles).
- Ford Pro’s pretax profit is expected to drop to $7.5 billion–$8 billion (€7.3 billion–€7.7 billion), down from $9.02 billion (€8.9 billion) in 2024.
- Ford Blue’s pretax earnings are projected between $3.5 billion and $4 billion (€3.3 billion–€3.8 billion), down from $5.28 billion (€5.2 billion) this year.
Investor Reaction and Market Impact
Despite fourth-quarter financial results exceeding Wall Street estimates, Ford’s cautious outlook rattled investors. Shares of the automaker fell 5.1% in after-hours trading, following a 1.5% decline during regular trading.
As Ford navigates financial pressures and intensifies its EV strategy, analysts expect the company to focus on cutting costs, improving efficiency, and adapting to shifting market demands in the year ahead.
News
Iran Says Hormuz Can Reopen Within Seven Days as Oil Exports Come Under Pressure
Iran’s military said it retained full control of the Strait of Hormuz on Monday, while Foreign Minister Abbas Araghchi said the strategic waterway could be fully reopened within seven days if Tehran’s conditions were met and hostile measures against the country were lifted.
The statements came as Iran faced growing economic pressure, with the rial falling to record lows, Oil Minister Mohsen Paknejad resigning and the United States claiming that Tehran had not loaded any crude onto tankers during September.
Brigadier General Aziz Jafari, commander of Iran’s Khatam al-Anbiya Joint Air Defence Headquarters, said all movements through the Strait remained under the control of the Iranian armed forces despite changes in US tactics.
“All movements (in Hormuz) are under the control of the armed forces of the Islamic Republic,” Jafari said.
US Treasury Secretary Scott Bessent said on Thursday that Iran had not loaded crude oil onto tankers during September, arguing that the Trump administration was targeting Tehran’s main source of revenue.
Iranian President Masoud Pezeshkian acknowledged in August that restrictions were disrupting oil exports, saying the country had previously been able to sell oil but was now unable to do so at the same level.
Paknejad’s resignation was officially attributed to family and personal matters. However, his departure came amid speculation about the impact of reduced oil exports on government finances. Before his resignation was announced, Paknejad said in a video carried by Iranian media that revenue from oil already sold would be collected and that the process would continue.
The acting oil minister has pledged to maximise production and maintain exports through new strategies.
Despite pressure on Iranian exports, oil shipments from other parts of the region remained high. Ship-tracking company Kpler estimated crude exports from the region excluding Iran at between 19.5 million and 22.5 million barrels per day during the final week of September, compared with a pre-war regional average of about 18 million barrels per day.
Iran’s currency has also come under severe pressure. The euro rose above 300,000 tomans on the informal market, while the US dollar reached 270,000 tomans, more than double its level of about 135,000 tomans at the beginning of the year. One toman is equal to 10 rials.
The UK Maritime Trade Operations agency reported at least one attack each day in the Strait of Hormuz or the Gulf of Aden since October 2.
Araghchi told foreign ambassadors in Tehran that the conflict could not be resolved militarily and called for negotiations based on fairness. He warned that any renewed military confrontation would trigger a stronger Iranian response.
Parliament Speaker Mohammad Bagher Ghalibaf said Tehran had received US proposals through intermediaries but rejected what he described as one-sided demands.
He said the Strait would remain closed until Iran’s seven conditions, based on the Islamabad memorandum, were met.
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