The announcement from Ford in December that it would pivot from an EV-heavy future to one where hybrids are in focus was set from the start to lead to a financial hit, with the pain of the decision now detailed.
Overnight, Ford announced it lost US$8.2 billion (A$11.6 billion) last year, a huge jump on its 2024 annual losses of US$5.9 billion (A$8.3 billion). Of that figure, a staggering US$4.8 billion (A$6.8 billion) was chalked down to the Ford Model e EV division.
Ford previously said it expected short-term losses of US$19.5 billion (A$27.6 billion) from its changing EV plans, with more pain expected to carry on in the coming years until 2029.
The major pivot in Ford’s EV strategy centred around the F-150 Lightning, the electric version of the best-selling pickup.
Once the subject of significant demand – to the point where production plans were doubled – the F-150 Lightning suffered from delays, supply issues and subsequent customer criticism, eventually leading to its axing in December.
In doing so, Ford also announced plans for a second-generation EV model had also been cancelled, with the F-150 Lightning to instead return as a range-extended electric vehicle.
On top of this, Ford said it would no longer intend to “produce a previously planned new electric commercial van for Europe”, instead saying it “will continue to maintain its full lineup of electrified vans for that market”.
The North American market Ford E-Transit will also be replaced with “a new, affordable commercial van” that will be available with petrol and hybrid power.
Ford is set to repurpose its upcoming ‘BlueOval City’ facility in Tennessee to produce a new range of pickups from 2029, rather than the existing plan to have it as a hub for EVs.
Despite the losses, Ford posted total revenue of US$187.3 billion (A$264.9 billion) for the year, a one per cent increase on 2024, while it announced it delivered 4.395 million vehicles globally in 2025.
“Ford delivered a strong 2025 in a dynamic and often volatile environment,” said Ford president and CEO Jim Farley in announcing the financial results.
“We improved our core business and execution, made significant progress in the areas of the business we control – lowering material and warranty costs and making real progress on quality – and made difficult but critical strategic decisions that set us up for a stronger future.”
The Blue Oval brand is also forging ahead with its plans to launch a new ‘Universal EV’ platform in 2027, set to debut in a Ranger-sized pickup. Later it will grow to “a high-volume family of smaller, highly efficient and affordable electric vehicles”.
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