Ford is facing significant financial strain, driven by multi-billion dollar losses in its electric vehicle division, heavy tariff impacts, and warranty repair costs.

While the company is not in danger of immediate bankruptcy, it posted massive losses recently and is overhauling its strategy to return to profitability.

EV Division Losses: Ford’s EV segment, Model e, has been bleeding cash, with losses exceeding $5 billion recently.

Strategy Overhaul: Ford is taking billions in restructuring and write-down charges as it cancels or scales back massive EV projects (such as three-row SUVs) to pivot toward affordable sub-$40,000 models and gas-electric hybrids.

Headwinds & Recalls: The automaker faces substantial costs from high warranty repair rates and increased tariff impacts.

While Ford's vehicle sales overall rose by 6% in 2025, its EVs saw a noticeable decline of nearly 15%, according to Electrek, with CEO Farley pointing to high price points as the primary explanation. In total, due in part to significant investment in the EV future, Ford recorded net losses of $11.1 billion in the fourth quarter of 2025 alone, its worst mark since the 2008 financial crisis.

How many Billion$ can a company lose before becoming bankrupt?

I still predict that the EV market will slowly die as the market runs out of first-time buyers, and repeat buyers do not materialize.

In most markets, sustainability is dependent on repeat buyers. To better understand the effect of repeat business, here are some examples:

1. A grocery store would go out of business in a week without repeat buyers.

2. In contrast, an engagement ring manufacturer is not significantly dependent on repeat buyers and is far more dependent on first-time buyers.

3. Because of the increasing length of time for consumers to buy a replacement vehicle, lack of repeat buyers for EVs will not immediately impact EV sales as much as the decline rate in first-time buyers, but lack of repeat business will be the eventual cause of the collapse of the EV market, occurring over perhaps 8-15 years.

Also, when the road tax bureaucracy finally wakes up and ends the EV free ride, more people will sour on EVs.

I have zero use for an EV.

YMMV

Ol' angry boy KR will say I am "obsolete" in my thinking, but I was the university professor, not he, and he has a couple of old stodgy, bumpy IC Jeeps, not trendy EV yuppiemobiles.