Ford’s Survival Strategy Tested by Dual Crises

The Ford Motor Company finds itself navigating turbulent waters as two significant challenges threaten its financial stability. While the automaker's electric vehicle division continues to report substantial losses, its profitable truck operations face production disruptions following a supplier incident. These concurrent issues raise questions about the company's ability to maintain its competitive position in the evolving automotive landscape.

Ford's most recent quarterly results provided some positive news for investors. The company reported earnings per share of $0.45 and revenue of $50.5 billion, both exceeding market expectations. However, financial analysts note concerning indicators in the company's Altman Z-Score, which currently stands at 1.04, placing Ford in what experts classify as the "distress zone" for corporate financial health.

The company continues to make strategic moves in various markets. In Europe, Ford is rolling out its BlueCruise driver-assistance technology, while its planned return to Formula 1 racing in 2026 generates positive media attention. These developments contrast with the recent closure of the Saarlouis facility, which marked the end of Focus production.

Electric Vehicle Division Weighs Heavily on Finances

Substantial losses continue to plague Ford's Model e electric vehicle unit. The division recorded a $1.4 billion deficit in the third quarter of 2025 alone, bringing cumulative EV losses since 2023 to over $13 billion. The F-150 Lightning, once heralded as a flagship product in Ford's electric transition, now faces potential discontinuation due to disappointing sales performance.

Should investors sell immediately? Or is it worth buying Ford?

The sales figures reveal a stark contrast between consumer preferences. During October, Ford sold 66,000 gasoline-powered F-Series pickup trucks compared to just 1,500 units of the Lightning electric variant. CEO Jim Farley has openly described the electric vehicle business as "brutal," while maintaining the company's commitment to electric mobility through plans for a more affordable electric pickup scheduled for launch in 2027.

Supply Chain Disruption Impacts Core Business

A September fire at a Novelis aluminum plant has created significant production challenges for Ford's most profitable vehicle lines. The manufacturing disruption is expected to result in 90,000 to 100,000 fewer vehicles produced, primarily affecting the high-margin truck segment that traditionally generates substantial cash flow.

The financial impact of this supply chain issue is considerable. Ford anticipates a reduction of $1.5 to $2 billion in adjusted EBIT (earnings before interest and taxes) and a $2 to $3 billion shortfall in free cash flow projections for 2025. Despite implementing emergency measures such as additional production shifts, company officials indicate that manufacturing operations won't fully recover until 2026.

This production crisis strikes at the heart of Ford's business model, impairing the very operations that typically offset losses from the electric vehicle division. As the automotive industry continues its complex transition toward electrification, Ford must balance investment in future technologies with maintaining the profitable combustion engine business that funds this transformation.