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Ford On Tuesday it posted its biggest quarterly loss since 2008 amid losses at the automaker’s electric vehicle (EV) division, as well as the impact of costs and a fire that disrupted an aluminum supplier.
The Detroit automaker reported a fourth-quarter net loss of $11.1 billion after disclosing a large write-down on its EV plans, which the company is restructuring in response to lower-than-expected consumer demand and changing government subsidies.
“I think the customer has spoken,” Ford CEO Jim Farley said on a conference call. “That’s the punchline.”
The company lost $4.8 billion on EVs last year and projects 2026 will bring losses in the range of $4 billion to $4.5 billion, adding that the segment will continue to lose money for at least the next two years. Ford CFO Sherry House said during an earnings call that the automaker aims to break even its EV unit by 2029.
Ford also announced a bigger-than-previously-reported tax hit, as the company lost another $900 million after the Trump administration said in December that the tax relief program would take effect in November, rather than back in May as originally expected.
FORD CUTS ELECTRIC F-150 PRODUCTION, TAKES $19.5B CHARGE FOR STRATEGIC SHIFT
Ford became famous for its revolutionary assembly line, introduced with the Model T in 1908. (Jeff Kowalsky/Bloomberg via Getty Images)
The automaker’s tax bill last year was nearly $2 billion, and Ford said it expects the tax bill to be about the same this year.
Ford was heavily dependent on imported aluminum due to the joint fire aluminum plant near Oswego, New York, which is not expected to be fully operational again until sometime between May and September.
Despite those headwinds, Ford’s fourth-quarter revenue of $45.9 billion beat analysts’ expectations. The company narrowly missed its revised guidance of $7 billion, as it posted earnings before interest and taxes of $6.8 billion for the year.
MANAGERS EXTEND INVESTIGATION INTO NEARLY 1.3M FORD F-150 MATRUCK OVER TRANSMISSION DAMAGE
| A ticker | Security | Finally | Change | change % |
|---|---|---|---|---|
| F | This company FORD MOTOR CO. | 13.59 | 0.00 |
0.00% |
Late last year, Farley announced that the company would cut production of the electric F-150 Lightning and refocus its investment on hybrid vehicles. affordable EVsresulting in a $19.5 billion charge on its EV and product pipeline.
He said this move will allow the company to refocus on investing in high-quality areas like them Trucks are built in Americavans and hybrids across its lineup, as well as affordable EVs.
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Ford CEO Jim Farley previously announced the EV write-down and strategic pivot. (Emily Elconin/Bloomberg via Getty Images)
The company is planning a $30,000 EV platform and has signaled that it will begin rolling out an electric van in that platform next year. Ford also plans to pursue targeted partnerships in specific markets and investments in hybrid technologies.
“I believe this is the right allocation of money. It’s a combination of partnerships where it makes sense, investments that are part of the success of electrification where we have the revenue potential, and really hitting the EV market at the core,” Farley told analysts on a call Tuesday.
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Reuters contributed to this report.
