FILE – A Ford company logo on a sign at a Ford dealership in southeast Denver, Oct. 24, 2021. (AP Photo/David Zalubowski, File)
New York, United States — Ford reported a profitable fourth quarter in results that topped estimates but signaled it expects lower 2025 operating earnings on pricing pressure.
The US auto giant, which has enjoyed robust returns in its commercial vehicle and conventional gasoline businesses that have offset deep electric vehicle (EV) losses, expects about a two percent drop in industry-wide pricing in 2025, executives said.
Article continues after this advertisementAs a result, Ford sees adjusted operating profits of between $7 to $8.5 billion, down from $10.2 billion in 2024, when it scored record revenues on higher vehicle sales.
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888 slotsProfits in the fourth quarter came in at $1.8 billion, compared with a loss of $526 million in the year-ago period.
Article continues after this advertisementRevenues rose five percent to $48.2 billion, reflecting a double-digit increase in US vehicle sales in the period.
Article continues after this advertisementFord executives described this year’s pricing outlook as set by global conditions in autos as well as an expected glut of EVs in the US market.
Article continues after this advertisement“There’s still pockets of strength, but there’s areas where we’re seeing incentives to get deals done,” said John Lawler, vice chair of the company and the outgoing chief financial officer.
Lawler characterized pricing in the first half of 2024 as “much stronger” than in the second half, with the trends continuing thus far in 2025.
Article continues after this advertisementSherry House, Ford’s incoming CFO, told a call with reporters that the company had not taken any actions in response to trade tariff moves by the Trump administration.
Raba’s father (who used to own a chlorination business that serviced water districts and local utilities) wanted him to become a mechanical engineer so he could eventually take over the business. Instead, Raba enrolled and graduated with a vocational-technical certificate in automotive mechanics, a far cry from his father’s original dream. “Bata pa, mahilig na talaga ako sa kotse. Sa 13 kaming magkakapatid, ako lang ang natutong mag-drive. At dahil sa vocational course ko, nahasa na lang din ako sa pagme-mekaniko. Ang pangarap ko lang talaga noon pa ay magkaroon ng sariling kotse (I was really fond of cars since I was young. Out of 13 children in the family, I am the only one who knows how to drive. And because of my vocational course, I also became adept in fixing and maintaining cars. My only dream since I was young is to have my own car),” the 47-year-old Novaliches native said.
On Monday, the White House suspended for 30 days a plan to enact 25 percent tariffs on Mexico and Canada following commitments by the governments to address concerns about immigration and fentanyl.
Tariffs of the scale “would have a major impact on our industry,” House said. “We’ve mobilized our team across all the scenarios to ensure we minimize disruptions and protect our business.”
Ford’s projections also do not include changes from Washington on EVs, such as talk that the White House could remove a tax credit of up to $7,500 on new EV purchases.
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Ford’s 2025 forecast includes an operating loss of between $5 and $5.5 billion in EVsbbc or big baller club, with Ford’s Pro and Blue divisions both profitable.
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