Ford Faces EV Challenges Amid Tariff Turmoil

Ford Motor Company is facing significant challenges with its electric vehicle operations, projecting a $5.5 billion loss for the year. The company is grappling with quality issues, policy uncertainties, and potential tariffs. Despite challenges, Ford is focused on future EV and hybrid innovations while trimming operational costs.

Ford Motor Company has projected a substantial $5.5 billion loss for its electric vehicle and software operations this year, revealing the ongoing struggle to reduce costs for battery-powered models. Although the automaker anticipates overall profitability by 2025, it's expected to be less than in 2024. The company's stock dropped 5% in after-hours trading following the announcement.

One major concern is U.S. President Donald Trump's proposed 25% tariffs on imports from Mexico and Canada, which could significantly impact the auto industry. Ford, wedged between persistent quality issues and fluctuating U.S. policies, aims to stabilize its operations under CEO Jim Farley.

Despite investment in future EV models, Ford is cutting costs by $1.4 billion and heavily relying on hybrids, unlike competitor GM which is focusing on expanding its EV lineup. The company is also wary of the impacts of potential tariffs affecting key models assembled in Mexico.

(With inputs from agencies.)