Ford Motor Company saw its net profit plummet by 65 percent in the first quarter of 2025 and announces that auto tariffs imposed by the U.S. administration could cost it up to $1.5 billion USD this year. The company has also suspended its financial forecasts for the entire year, this as the tariffs remain in place and begin to make themselves felt more fully.
Impact of tariffs estimated at $2.5 Billion in lost gross revenue
Ford's Chief Financial Officer, Sherry House, specifies that the gross impact of the tariffs is estimated at $2.5 billion USD in 2025, but that logistical strategies such as the use of carriers in transit to Canada have allowed the net impact to be limited to $1.5 billion.
By comparison, GM estimates its exposure to tariffs between $4 and $5 billion, due to its more extensive overseas production.
Financial results: Profits and revenues down
Ford's results for the first quarter of 2025 explain, in part, the downward projections for the year:
- • Total Revenue: $40.7 billion USD (down 5 percent)
- • Net Profit: $471 million USD (down 65 percent)
- • Adjusted EBIT: $1 billion USD (down 63 percent)
Ford attributes the performance declines to temporary production shutdowns, particularly related to the redesign of the Expedition and Lincoln Navigator SUVs, but assures that the company's fundamentals remain strong.
Ford Pro holding up best
The Ford Pro commercial division, seen as one of the brand's major assets, generated $1.3 billion USD in profits, despite a 56-percent decrease compared to last year. Revenues for this division fell by 16 percent to $15.2 billion.
On the traditional powertrain side (Ford Blue), profits plummeted by 89 percent to $96 million, while revenues decreased by 3 percent to $21 billion.
Operating losses continue on the electric side
The Ford Model e segment, dedicated to electric vehicles, recorded a loss of $849 million USD, which is actually an improvement over the $1.3 billion loss in the same quarter last year. EV sales overall did increase by 15 percent in the U.S in Q1.
Precautions in the face of uncertainty
Faced with the instability caused by tariffs, Ford is suspending its annual forecasts. The company cites substantial risks related to potential supply chain disruptions, changes in the application or level of tariffs, international retaliatory measures and regulatory uncertainties on taxation and emissions.
Shares down and caution regarding China
In reaction to the Q1 announcement, Ford's stock fell 2.3 percent to $9.94 USD after market close. The company says it is closely monitoring the supply of rare earths from China, a critical issue for component production.
Regarding Lincoln, Ford still has sufficient stock of the Chinese-built-made Nautilus and doesn’t plan to import any more before the 2026 model. No changes have yet been made to the production of models assembled in Mexico.
Forecasts for the U.S. market
Ford forecasts that light vehicle sales in the U.S. will reach 15.5 million units in 2025, a decrease of 500,000 vehicles compared to initial forecasts. Industry prices are nonetheless expected to increase by 1 to 1.5 percent in the second half of the year, due to tariff pressure.
Despite everything, Ford management insists it is maintaining its efforts to reduce costs by $1 billion USD this year, excluding the effect of tariffs.