Ford posted a net loss of $8.2 billion last year as its China operations contracted simultaneously

Chinese automakers’ advantages in electrification and cost performance are beginning to spill over into the financial reports of traditional car companies. Ford Motor Company posted its largest annual loss since 2008 last year.

Ford’s recently released Q4 and full-year 2025 financial report shows the company achieved approximately $187.3 billion in revenue for the year, a slight increase from the previous year. Supply chain shortages eased, factory capacity utilization returned to healthy levels, which partly supported Ford’s stable revenue.

On the other hand, the company reported an overall net loss of about $8.2 billion for fiscal year 2025, significantly lower than 2024; adjusted EBIT for 2025 was $6.8 billion, a noticeable decline from 2024, reflecting ongoing profit margin pressures. Breaking it down, this huge loss mainly stems from a series of extraordinary expenses, asset impairments, and significant losses in the electric vehicle business.

Previously, Ford recorded hundreds of millions of dollars in special project expenses related to strategic adjustments, including canceling some large-scale EV production plans, global restructuring, and asset impairments. This large expenditure directly wiped out the cumulative profits of the first three quarters, turning the full year from profit to loss.

In 2025, Ford’s global sales were surpassed for the first time by Chinese automaker BYD (002594). This reflects China’s automakers’ advantages in electrification and cost performance in the global automotive landscape.

Chinese automakers continue to push forward globally, leading to significant declines in the performance of many traditional established brands. Besides Ford’s profit plunge, Mercedes-Benz, General Motors, Stellantis, Hyundai, and others also showed signs of performance pressure last year.

In the reshaping of global competitiveness among automakers, Ford’s strategy has begun to waver. Some media have described Ford as a “microcosm of industry lagging behind in the transformation.”

The consensus in the automotive industry is that the golden age of joint venture brands is coming to an end. In this industry reshuffle, there are no eternal winners—only companies that adapt to the times, accelerate transformation and innovation, and precisely match market demands can stand firm and seize new development opportunities.

Last year, Ford announced a strategic adjustment. According to public information, this includes increased investment in commercial vehicles, venturing into battery energy storage, and canceling some large EV production plans. Ford stated it will vigorously promote diversification of powertrains, including a series of hybrid and extended-range electric vehicles.

As one of Ford’s core global markets, its China operations are shrinking in tandem. Changan Ford’s annual sales have fallen below 100,000 units.

Data shows that in 2025, Changan Ford’s retail sales in China were only 99,400 units, marking the first time falling below the 100,000-unit survival threshold, a halving from 247,000 units in 2024. A decade ago, Changan Ford’s annual sales nearly reached one million units.

Automobile industry experts analyze that, based on industry norms, an annual sales volume of 100,000 units is a critical threshold for automakers to share R&D costs, maintain capacity utilization, and keep dealer networks stable. If annual sales do not reach this scale, survival challenges will become prominent.