Ford Motor Company's Electric Vehicle and Software Business Performance
Ford Motor Company reported a $5.1 billion loss in its electric vehicle and software business for 2024, with expectations of more losses in 2025. Despite setbacks in the EV business, Ford's traditional gas-powered vehicles continue to perform well. CEO Jim Farley addressed concerns about potential tariffs on imports from Mexico and Canada by President Donald Trump. Ford plans to introduce new powertrain options to address challenges and compete in the market.
Key Points
- Ford lagging behind rivals in the EV market
- Plans to introduce a range of powertrains to address challenges
- CEO Jim Farley addressing concerns about potential tariffs
- Ready to compete in a price war by cutting distribution costs and advertising
Pros
- Traditional gas-powered vehicles continue to perform well
- Ford reported a full-year net income of $5.9 billion and adjusted earnings of $10.2 billion
Cons
- Substantial losses in the electric vehicle and software division ($5.1 billion in 2024)
- Predicted further losses in 2025