Ford Motor Company, a major American auto manufacturer, has revealed staggering financial losses, reporting a $4.8 billion loss in its electric vehicle division for the year 2025. The company also suffered a net loss of $11.1 billion in the fourth quarter, compounded by broader business strains including supply chain disruptions and increased tariffs. Even though Ford underwent a significant $19.5 billion writedown in December for its electric vehicles, it anticipates a profitability rebound in its overall operations this year.

During a conference call to discuss the results, Ford’s chief financial officer, Sherry House, indicated that the company aims for a break-even point by 2029, following significant losses over the past year. Despite the adjusted fourth-quarter profits of $1 billion showing a decline from the previous year, Ford remains optimistic about recovering financial stability as they restructure parts of their business. The challenges faced by the company reflect broader issues within the automotive sector, particularly those adapting to the shifting landscape towards electric vehicles amid economic pressures.

The forecasted losses and ongoing issues raise questions about the automaker's future viability in an increasingly competitive market. Investors and market analysts will be closely monitoring how Ford navigates through these hurdles and whether it can effectively implement strategies to enhance profitability and reinvigorate investor confidence. The report also highlights the prevailing difficulties American manufacturers face in the transition to electric vehicles, exacerbated by external factors like tariffs and rising operational costs.