Ford Projects $5.5 Billion Loss in EV Sector

Ford Motor Company is facing a daunting forecast of up to $5.5 billion in losses for its electric vehicle and software sectors this year, highlighting ongoing challenges in cost management for battery-powered models. Despite a strong fourth quarter with a net profit of $1.8 billion, investor concerns led to a 5% drop in the company's stock. The potential implementation of 25% tariffs on imports from Mexico and Canada poses further risks, threatening to increase production costs for key models like the Maverick and Mustang Mach-E. In response, CEO Jim Farley is pivoting towards hybrid vehicles, which have seen sales nearly double compared to EVs, while also planning for overall profitability by 2025. Ford's strategy contrasts with competitors like General Motors, who are aggressively expanding their EV lineups. The automaker's decision to delay certain electric models and focus on hybrids reflects its attempt to navigate a complex market landscape amidst fluctuating U.S. policies.