Ford Motor Company is undergoing significant financial strain, as revealed in its fiscal 2025 earnings report released on February 11. The company's core profitability metrics fell substantially below market expectations, with a net loss of $8.2 billion—a sharp reversal from the net profit of $5.879 billion recorded in fiscal 2024. In the fourth quarter of 2025, Ford's revenue declined by 5% year-over-year to $45.9 billion, while its net loss widened to $11.1 billion.
Management attributed the disappointing performance to substantial impairments in its electric vehicle (EV) segment, losses from a fire at an aluminum supplier, and unexpected tariff expenses. Looking ahead to fiscal 2026, Ford anticipates adjusted earnings before interest and taxes (EBIT) to range between $8 billion and $10 billion, expecting improved results as one-time loss factors are resolved.
In December 2025, Ford announced a large-scale restructuring of its long-unprofitable EV business, recording a special charge of $19.5 billion, most of which was accounted for in the fourth quarter. The company stated that due to lower-than-expected demand, high costs, and evolving regulatory policies, the commercial viability of certain large electric models has been compromised, leading to their discontinuation.
Following the scaling back of its EV operations, Ford expects reduced losses from this segment. Historical financial reports indicate that losses from Ford's EV division have grown consistently from 2021 to 2024: $900 million, $2.1 billion, $4.7 billion, and $5.1 billion, respectively. In 2025, the division reported a loss of $4.8 billion. Ford projects that EV-related losses will narrow to between $4 billion and $4.5 billion in 2026.
As a key global market for Ford, its operations in China have also entered a contraction phase, with both sales and profits declining. According to data from the China Passenger Car Association, Changan Ford's retail sales in 2025 totaled just 99,400 vehicles, while wholesale sales dropped to 121,500 units—nearly half of the 247,000 units sold in the same period of 2024. Sales of the Lincoln brand also fell by over 30% year-over-year to 36,300 units.
Financially, Changan Automobile's reports showed that Changan Ford generated revenue of RMB 18.16 billion in the first half of 2025, down 20% from the prior year, while net profit fell 59% to RMB 753 million, reflecting continued weakening profitability. Changan Automobile has since ceased disclosing Changan Ford's standalone financial results.
Jiangling Ford's performance has also been lackluster. Jiangling Ford Technology reported net losses of RMB 839 million in 2023 and RMB 677 million in 2024. In 2025, Jiangling Motors’ net profit attributable to shareholders declined by 22.71% to RMB 1.188 billion, largely due to a deferred tax asset reversal following business adjustments at its subsidiary Jiangling Ford.
In response to operational pressures, Ford China initiated a comprehensive channel reform in 2025, establishing a wholly-owned sales and service company—Ford Automotive Sales and Service (Shanghai) Co., Ltd.—to integrate Changan Ford, Jiangling Ford, and imported vehicle operations. Approximately 380 dealerships will be merged into a unified network. Ford China and Ford International Markets Group President and CEO Shengbo Wu stated that the establishment of the fully-owned sales company represents a bold innovation in marketing, sales, and service, aimed at enhancing dealer efficiency and profitability.
Industry analysts suggest that Ford's challenges reflect broader difficulties faced by traditional automakers amid a historic industry transformation. The costs of transitioning to electrification have exceeded expectations, while the rapid rise of Chinese domestic brands and increased uncertainty in global supply chains and regulatory environments have intensified competitive pressures.
In the Chinese market, Ford has lost its dual advantages of economies of scale and brand premium. To survive in one of the world's most competitive automotive markets, the company must fully abandon its reliance on joint-venture benefits and adopt a pragmatic approach to restructuring its product lineup, sales channels, and cost framework. The $19.5 billion impairment of its EV business not only signifies an operational overhaul but also a strategic repositioning within the new global automotive landscape.