Perhaps Ford is simply getting all of it out of its system earlier than the calendar flips to January.
The U.S. automotive staple has had a comparatively sturdy 2025, with gross sales anticipated to extend 12 months over 12 months; nonetheless, its working revenue has taken a success this 12 months.
Ford’s whole U.S. gross sales by 12 months:
- 2024: 2.08 million autos bought, +4.2%
- 2023: 1.99 million autos bought, +7.1%
- 2022: 1.77 million autos bought, -2.2%
- 2021: 1.9 million autos bought, -6.8%
Supply: Finest-Promoting Automobiles
Ford Motor’s EBITDA for the 12 months ending September 30, 2025, was $9.4 billion, a 4.55% year-over-year decline.
Falling EBITDA has been a persistent concern for Ford, because it has steadily declined from the $12.8 billion reported in 2021.
Tariffs this 12 months did not assist. The corporate acknowledged that it might incur over $1 billion in tariff bills. Nonetheless, since Ford manufactures about 80% of the autos it sells within the U.S. domestically, its tariff burden is considerably decrease than that of its rivals.
Whereas tariffs are pricey, they aren’t the largest subject Ford faces going ahead.
After a record-breaking 12 months, recollects are the difficulty that’s costing Ford essentially the most and will derail any of the corporate’s future progress plans.
Ford blows away GM’s recall report
Earlier this 12 months, Ford earned an ignominious distinction after it issued its 89th recall of the 12 months earlier than July. The Blue Oval shattered the report set by Basic Motors in 2014, when it issued 77 recollects that 12 months.
“We are not satisfied with the current level of recalls or the number of vehicles impacted. We are working to reduce the cost of these recalls,” mentioned Chief Working Officer Kuman Galhorta throughout the firm’s second quarter earnings name.
November Ford gross sales by model
- Ford F-150 Lightning: 1,006 (-72%)
- Ford Mustang Mach-E: 3,014 (-49%)
- Ford SUVs: 55,888 (-3.7%)
- Ford Bronco: 11,045 (+7%)
Supply: Ford
Associated: Ford Motor provides to report it’s embarrassed to carry
Galhorta went on to say that nearly all of its recollects are “tied to vehicles engineered several years ago before we made all the robust process changes across our industrial system.”
However the subject has solely worsened.
Ford has issued practically 140 recollects to this point this 12 months, based on the Nationwide Freeway Site visitors Administration, that means the corporate is on observe to greater than double GM’s report.
Whereas Ford isn’t the one unique gear producer scuffling with recollects in 2025, it’s by far having the hardest time.
Ford has accounted for 35% of U.S. auto recollects this 12 months, based on the Nationwide Freeway Site visitors Administration. Stellantis, in second place for the variety of recollects, solely accounted for 12%.
Ford recollects practically 300,000 autos over parking subject that would trigger accidents
On Friday, Ford added to its ignominious report when it introduced a recall of 272,645 autos within the U.S. as a consequence of a lack of park operate that would trigger the automobile to roll away, rising the chance of a crash.
The corporate is recalling sure 2022-2026 F-150 Lightning BEVs, 2024-2026 Mustang Mach-Es, and 2025-2026 Maverick autos because of the built-in park module probably failing to lock into the park place when the driving force shifts it there, the NHTSA mentioned.
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Nevertheless, this is without doubt one of the recollects that may be fastened with a software program replace, so the park module software program will likely be up to date over-the-air or by sellers freed from cost.
That is at the very least the second Ford recall from December. Two weeks in the past, the NHTSA introduced a Ford recall of 108,762 autos as a consequence of an improperly secured liftgate hinge that would detach.
That recall lined sure 2020-2022 Escape and 2025 Escape fashions. Individually, Lincoln, Ford’s luxurious arm, additionally recalled practically 12,000 Lincoln MKT autos as a consequence of a driver and entrance passenger door trim that would detach, rising the chance of a crash.
Ford says the Escape subject occurred throughout the meeting course of when the hinge covers weren’t correctly secured. Ford’s meeting course of has come underneath scrutiny up to now, and the corporate says it’s effectively on the way in which to fixing the difficulty.
Ford says it’s fixing recall and high quality points
Ford is conscious of its quality-control points, and CFO Kumar Galhotra addressed the difficulty throughout his feedback on the corporate’s third-quarter earnings name.
“Improving quality is the single biggest driver to close our cost gap. Better quality
lowers warranty expense and reduces recalls,” Galhotra mentioned.
Ford says it’s already making progress and is “on track” for best-in-class efficiency throughout six of its nameplates, with three different nameplates within the high quartile, based on J.D. Energy guarantee analytics knowledge.
The corporate additionally reported decrease year-over-year third-quarter guarantee prices, down $450 million.
In 2023, Ford spent $4.8 billion fixing buyer autos, a 15% improve from the earlier 12 months. It put aside $1,203 for guarantee repairs on every automotive it bought that 12 months, based on Guarantee Week.
A latest research by iSeeCars.com, analyzing 31 years of recall historical past, discovered that Ford is the least proactive automotive model in the case of issuing recollects. Fewer than 30% of the automobiles recalled during the last three many years resulted from an issue Ford discovered by itself.
To treatment this drawback, in 2024, Ford initiated a brand new high quality assurance program that includes “testing vehicles to failure,” working them “at extremely high mileage” to search out potential issues earlier than clients do.
On the time, CEO Jim Farley mentioned the brand new method would “reduce warranty (costs) over time.”
