Ford CEO admits that ‘the customer has spoken’ after EV push drives major quarterly loss

Ford reported its largest quarterly loss since 2008, primarily due to struggles in its electric vehicle (EV) division, tariffs, and a fire at an aluminum supplier. The automaker posted a net loss of $11.1 billion in the fourth quarter, with significant writedowns in its EV programs.

Ford’s CEO, Jim Farley, acknowledged the challenges, stating that the company is realigning its EV strategy in response to consumer demand and changing subsidies. The company lost $4.8 billion on EVs in the previous year and anticipates further losses in the coming years.

Additionally, Ford faced increased tariff costs and impact from fires at an aluminum plant, resulting in a $900 million loss. Despite these setbacks, Ford’s fourth quarter revenue exceeded expectations, with earnings of $6.8 billion for the year.

To address these challenges, Ford announced a shift in focus from electric to hybrid vehicles, resulting in a $19.5 billion charge on EV assets. The company plans to invest in more affordable EVs and hybrid technologies, aiming for a break-even in its EV unit by 2029.

Farley emphasized the importance of strategic partnerships and efficient investments to strengthen Ford’s position in the market. The company is planning to introduce a $30,000 EV platform and launch an electric pickup next year.

Reuters contributed to this report.