Ford posts £5.9bn loss due to EV struggles and is outsold by BYD

Ford posted a massive $8.2bn (£5.9bn) loss last year, the result of a massive writedown due to an overhaul of its struggling EV business – and has dipped below Chinese giant BYD in annual vehicle sales. The Blue Oval recorded total wholesale volumes of 4,394,000 vehicles globally in 2025, compared to around 4.6 million for Chinese giant BYD. That is enough to make BYD the world’s sixth largest car manufacturer by volume – although has yet to issue a forecast for 2026, with production and sales declining in recent months due to increased competition. Notably, in Ford’s 2025 earnings call, company boss Jim Farley warned that Chinese firms represented a “wild card” threat to global car firms, due to their heavily subsidised car production and falling domestic demand in the Chinese market that has led to them sharply increasing exports. Farley said that the “real question” was how Chinese firms could “change the game” in terms of pricing power if they ramp up exports. He added that “given the overly competitive subsidied reality” that firms such as Ford “will have to future proof our cost around that pricing reality.” Ford’s huge loss in 2025 had been expected after the firm warned in December that it would take $19.5bn (£14.24bn) in charges due to the change of direction, which included canning several planned EVs including a large US-market SUV, a commercial vehicle and a next-gen pick-up. The vast bulk of that writedown was recorded in the last three months of 2025, with Ford posting an $11.1bn (£8.11bn) fourth-quarter loss as a result. Notably, Ford’s EV strategy in the US has pivoted, with the firm now working on a lower-cost electric platform to underpin a wide range of affordable future machines. Ford was also hit heavily with tariff charges, a result of the geopolitical tensions for much of the last year, citing $2bn (£1.46bn) in losses as a result – double what was originally forecast. That higher charge was, in part, because a change in rules prevented Ford from using some offsets to reduce its tariff charge. Despite the headline loss, there were some positives in the figures: the firm’s annual revenue of $187.3bn (£136.76bn) was a 1% increase on 2024, the fifth year in a row Ford’s revenue had grown. Ford is forecasting that it will post EBIT of $8 to $10bn (£5.8-£7.3bn) in 2026, compared to the $6.8bn (£4.96bn) posted in 2025. Ford also improved its market share in the US to 13.2%, and says that performance trims now account for 20% of its sales mix in its home country. Ford has split its car business into three divisions: Ford Blue for combustion and hybrid vehicles; Ford Model e for EVs and range extenders; and commercial vehicle firm Ford Pro. Ford Blue’s sales volume dipped 5% year-on-year, but still accounted for 2,728,000 vehicles, while its Model e arm actually grew volume from 105,000 to 178,000 vehicles, largely due to the increase of its European EV range. Its Pro arm was essentially flat year on year, with 1,488,000 sales. Meanwhile Farley, Ford’s president and CEO, has been elected to the board of directors of fast food giant McDonald’s. Chris Kempczinski, the CEO of McDonald’s, said Farley “brings invaluable experience balancing innovation with operational excellence, modernising customer experience, engaging independent operators, and harnessing technology to improve systems at scale.”

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Ford posts £5.9bn loss due to EV struggles and is outsold by BYD

Company's shift in strategy has led to huge losses, while Chinese giant has stolen its sales thunder

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Ford posts £5.9bn loss due to EV struggles and is outsold by BYD

Company's shift in strategy has led to huge losses, while Chinese giant has stolen its sales thunder

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