Ford Grapples with Systemic EV Losses and Sub-2% Operating Margins

Mar 20, 2026 (20 hr ago)

Negative

Ford faces deep operational headwinds, marked by significant losses in its EV division and historically low profitability across the enterprise.

Ford's Core Profitability and EV Struggles

The dedicated EV division has reported substantial financial losses, compounded by slower demand trends in the broader electric vehicle sector8
Average operating margin between 2015 and 2025 stood at a low 1.9%, indicating scale has not improved profitability significantly8
Revenue growth over the last decade (2015-2025) was only 24%, indicating a lack of substantial growth in the mass-market automobile industry8
The company is strategically pivoting to focus on producing high-volume electric vehicles designed for lower price points8

Ford is bracing for approximately $2 billion in gross tariff costs factored into its 2026 EBIT forecast range of $8 billion to $10 billion7
Supply chain constraints persist, as the main aluminum supplier, Novelis, is not expected to reach full production until mid-20267
The company faces potential headwinds from rising commodity prices, including aluminum, copper, and increased DRAM costs4

Ford is headed for an NTSB hearing on March 31 concerning two fatal crashes involving its BlueCruise hands-free driving technology7
The automaker currently leads the industry in the total number of vehicle recalls issued7

General Motors is aggressively leaning into software and digital services, using its OnStar platform as a key recurring revenue driver4
GM management projects software and services revenues to increase by about $400 million in 2026, with deferred revenues reaching $7.5 billion4
Conversely, GM anticipates $3-$4 billion in gross tariff costs impacting its operations in 20264