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.
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