Ford Motor Company has issued a forecast that it may incur significant losses related to its electric vehicle (EV) endeavors in 2025. According to the company, it could lose up to $5.5 billion on its EV projects.
This loss is primarily due to increasing tariffs on vehicles imported from Mexico and Canada. These tariffs have been a major challenge for Ford, as they significantly impact the automaker’s costs and make its products less competitive in the market.
However, despite these challenges, Ford’s Q4 revenue has exceeded analyst expectations. This positive result suggests that the company is navigating the difficulties of transitioning to electric vehicles while still managing to generate significant revenue.
As the automotive industry continues to shift towards sustainable energy sources, companies like Ford are facing significant hurdles. The forecast of potential losses highlights the risks associated with investing in EV technology and the need for manufacturers to carefully manage their costs and competitiveness.
The impact of tariffs on Ford’s operations is a pressing concern, as it can affect not only the company’s financials but also its market share. As the industry continues to evolve, companies will need to adapt quickly to stay ahead of the competition.
Source: https://www.reuters.com/business/autos-transportation/ford-projects-mounting-ev-losses-2025-q4-profit-up-2025-02-05