Ford experienced an exceptionally challenging financial year in 2025, reminiscent of the 2008 Great Recession, as the automaker recorded an $11.1 billion fourth-quarter loss, contributing to an overall annual loss of $8.2 billion. This significant downturn was primarily attributed to a failed strategic bet on consumer demand for electric vehicles (EVs), necessitating substantial write-downs. Ford had warned in December of taking $19.5 billion in charges related to strategy shifts and a comprehensive overhaul of its EV business, with $15.5 billion of this write-down incurred in the fourth quarter alone.

Adding to the financial strain were various other travails, including tariff issues and supplier disruptions. Losses due to tariffs soared to $2 billion, nearly double original forecasts, partly due to changes that prevented Ford from leveraging certain offsets. Adjusted earnings consequently fell by 34% to $6.8 billion, directly impacting profit-sharing checks for union workers, which decreased to approximately $6,780 from $10,200 in the previous year. Furthermore, two fires at aluminum supplier Novelis caused a $2 billion loss and led to a production shortfall of about 100,000 vehicles for Ford in 2025. Several large EV projects, including a three-row SUV, an electric commercial van, and a next-generation electric pickup truck, were canceled as Ford shifted its EV investment focus towards more affordable models built on a new universal architecture. The company's Model e division continued to incur losses throughout the year.

Despite the substantial challenges of 2025, there is a more optimistic outlook for 2026. Ford achieved record revenue of $187.3 billion for the year, marking a 1% increase, and also reported growth in sales and market share. The company expects a stronger performance in 2026, anticipating that many of its major headwinds are subsiding. Tariffs and broader government policies are projected to stabilize. Key business segments are also showing promise: Ford Pro is a significant profit driver, consistently delivering double-digit profit margins, and Ford Energy, a new venture specializing in energy-storage systems, is poised to begin generating revenue. Ford Blue has returned to profitability by strategically adjusting its product mix to better align with customer demand, including increasing the production of hybrid Ford Mavericks.

CEO Jim Farley indicated that Ford is undergoing a