Breaking News: Ford Estimates Billions in Losses on Electric Cars by 2025
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Ford Motor projected up to $5.5 billion in loss on its EV and software operations this year on Wednesday, Reuters said.
This loss is quite similar to last year and a sign of great difficulties when it comes to the costs of battery-powered models, according to Reuters.
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Ford anticipates overall profitability this year but has revised its earnings outlook downward compared to 2024, Autoguide said.
CEO Jim Farley is focused on stabilizing Ford's operations following a tumultuous 2024, but the automaker now confronts added uncertainty stemming from trade policy, according to Autoguide.
Ford is dialing back its EV ambitions as CEO Jim Farley trims plans for an all-electric three-row SUV and pushes back the next-gen F-150 Lightning. Instead, the automaker is pivoting toward a mid-size electric pickup, slated for a 2027 debut, with development led by its California-based "skunkworks" team, Motor1 News said.
"We looked where the segment was involving the amount of competition the customer needs, and then the size of the battery that needs to go in a pure EV vehicle, the cost structure, the pricing, we could not put together a vehicle that met our requirement being profitable in the first 12 months of launch, and we're sticking to that," John Lawler, Ford's Chief Financial Officer, said regarding the terminated Project.
Ford projects its 2025 earnings before interest and taxes to range between $7.0 billion and $8.5 billion, a drop from the $10.2 billion reported in 2024, according to Autoguide.
The forecast does not account for potential tariffs, as policy uncertainty remains.
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