Ford Motor expects to incur between USD 5.5 billion to USD 5.5 billion in total losses from its electric vehicle and software operations throughout 2025 at roughly the same magnitude as the previous year. Despite operating at a deficit for the fourth quarter Ford achieved net profits of USD 1.8 billion which exceeded the USD 500 million loss reported in the corresponding period last year.

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The company's stock price dropped 5% after the stock market closed. CEO Jim Farley intends to lead Ford toward stable results during 2025 following what he expects to be a challenging 2024 because the company confronts quality problems along with stock market losses and international trade policies adjustments.

Trade Uncertainty and EV Strategy

A 25% tariff threat launched by the previous U.S. President Donald Trump remains a major cause of uncertainty for Ford regarding its Mexican and Canadian import activity. The extended application of trade barriers according to Farley would result in billions of industry profits disappearing while simultaneously affecting employment statistics. Trump's policies will work toward enhancing auto industry capabilities according to him.

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The organisation achieved Q4 revenue of USD 48.2 billion which exceeded the predictions from market analysts who projected USD 43 billion. Adjusted earnings per share totaled 39 cents whereas market analysts initially projected 33 cents.

Market adjustments have led Ford to change its EV strategies and the three-row electric SUV received cancellation and the next-generation F-150 Lightning experienced delay. The company has chosen to allocate its resources toward developing new EVs at their California development team while scheduling a mid-sized electric pickup for 2027 release. General Motors pushes forward with multiple EV introductions through its offerings of the Blazer and Equinox models.

Hybrid Focus and Market Positioning

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Ford achieved better market success through its hybrid models producing 187,426 units versus 97,865 models of electric vehicles in 2024. The diverse powertrain offerings from Ford analysts point out enable the company to defend itself against potential financial damage that would result from the EV tax credit elimination whereas GM remains more exposed because of its solid commitment to battery-powered vehicles only.

For 2025, Ford forecasts lower earnings before interest and taxes, ranging from USD 7.0 billion to USD 8.5 billion. The company plans to cut costs by USD 1.4 billion while navigating a competitive pricing environment, with industry-wide prices expected to drop by about 2%.