What is the main issue with Ford?
Ford's main issue is balancing an accelerated shift to electric vehicles with profitability amid rising costs and stiff competition.
Ford Motor Company is undergoing a multi-year transition from traditional internal combustion engines to electric propulsion, software services, and connected mobility. The core challenge is to scale production and software profitability while managing labor costs, supplier dynamics, and competition from established automakers and new entrants, all within a shifting regulatory and trade environment.
Headwinds in the EV transition
Ford's shift to electric vehicles faces several intertwined headwinds that affect profitability and execution. These include the cost of batteries and materials, supply-chain constraints, demand and pricing pressures, and the need to modernize legacy plants while retooling for EVs.
- Rising battery and raw-material costs squeeze gross margins on new EV models.
- Vehicle supply-chain fragility, including chip availability and critical component sourcing, adds variability to production timing.
- Scaling battery production and securing North American supply chains through partnerships and localizing production adds complexity and capital needs.
- Demand for EVs varies by model and region, affecting pricing power and profitability.
- Competition from established automakers and new entrants, along with incentives and policy shifts, shapes market share and margins.
These dynamics create a challenging environment for immediate profitability even as Ford pushes to grow its EV lineup.
Strategic responses to the challenge
Ford has laid out a multi-pronged plan to address these issues, including manufacturing flexibility, cost discipline, and software and services expansion. The plan includes shifting more production to high-demand, high-margin vehicles, investing in EV battery and software capabilities, and pursuing partnerships to share risk and speed up development.
- Scale and diversify EV production with flexible manufacturing and platform sharing to reduce per-vehicle costs.
- Reduce structural costs and improve manufacturing efficiency across plants through capital investments and lean processes.
- Invest in software, connectivity, and connected services to build recurring revenue streams beyond traditional vehicle sales.
- Form strategic partnerships with battery producers and suppliers to stabilize supply and lower costs (including North American battery ecosystems).
- Optimize product mix and pricing strategy to protect margins while expanding the EV lineup.
Ford argues these steps are essential for achieving profitable growth as it transitions away from pure internal-combustion engine sales toward a balanced mix that includes software and services.
Battery strategy and supply chain
As a centerpiece of its EV push, Ford is pursuing large-scale battery capacity and supplier diversification in North America, including joint ventures and long-term supply agreements to reduce exposure to volatile battery prices and material shortages.
- Establish North American battery manufacturing capacity through partnerships (e.g., BlueOval SK) to localize supply and reduce lead times.
- Secure access to critical minerals and cathode materials via long-term contracts and multiple suppliers.
- Invest in battery recycling and second-life opportunities to manage costs and sustainability goals.
Solidifying battery supply and cost control is widely viewed as essential to Ford's ability to sustain profitability as EV volumes grow.
Summary
Ford's main issue is the tension between a bold EV expansion and maintaining healthy profits amid rising costs and intense competition. The company's response centers on scalable production, cost discipline, and expanding software and services, with battery strategy and supplier relationships at the core of the plan. How well Ford can execute this transition in a rapidly changing market will determine its longer-term profitability and market position.
Which Ford models are being recalled?
Ford models being recalled include the Bronco, Expedition, Explorer, F-150, and certain Lincoln models due to issues like loose seat bolts, fuel pump failure, and airbag problems. Other affected models and years are being recalled for various reasons, such as windshield defects, potential fire risks, and issues with the rearview camera system.
Vehicles with loose seat bolts
Ford Bronco (2021-2023).
Vehicles with possible fuel pump failure
- Ford Bronco (2021-2023)
- Ford Expedition (2022)
- Ford Explorer (2021-2023)
- Ford F-150 (2021-2022)
- Ford F-250 SD, F-350 SD, F-450 SD, F-550 SD (2021-2023)
- Ford Mustang (2021-2022)
- Lincoln Aviator (2021-2023)
- Lincoln Navigator (2021-2022)
Vehicles with a potentially faulty rearview camera
- Ford Explorer (2015-2020)
- Ford Escape (2015-2020)
- Ford Mustang (2015-2020)
- Ford Flex (2015-2020)
- Ford Fiesta (2015-2020)
- Ford C-Max (2015-2020)
- Ford Taurus (2015-2020)
- Ford Fusion (2015-2020)
- Lincoln MKT (2015-2020)
- Lincoln MKZ (2015-2020)
Other models affected by various issues
- Ford Bronco, Bronco Sport (2021-2023)
- Ford Expedition (2021-2022)
- Ford F-150 (2021-2023)
- Ford Super Duty F-250, F-350, F-450 (2021-2023)
- Ford F-550 (2021-2023)
- Lincoln Aviator (2022)
- Lincoln Navigator (2021-2022)
- Lincoln Corsair (2025-2026)
- Ford Explorer (2025-20
What is the most common problem with Ford?
Brake Rotor Wear: Brake rotor wear is common across many Ford models. Squeaking, grinding, or vibration when braking means it's time for a check. Electrical Glitches: Issues like malfunctioning power windows, dashboard displays, or door locks sometimes affect Escapes and Explorers.
What is Ford's biggest weakness?
Ford's major weaknesses are as follows:
- Limited global scope of production network.
- Higher costs compared to some competing automakers.
- Slow innovation processes.
Is Ford Motor Company having problems?
Ford is in trouble due to a record number of recalls in 2025, production disruptions from a key supplier's fire, and a market that has been affected by overpriced vehicles and a shortage of skilled workers. The company is facing issues from vehicle malfunctions, including brake and camera problems, to broader economic concerns about worker training and the cost of vehicles.
Key issues
- Record number of recalls: Ford has issued a record number of safety recalls in 2025, affecting a wide range of vehicles including trucks, SUVs, and cars, for issues like rearview cameras, brake systems, and potential engine problems.
- Production disruptions: A fire at the Novelis aluminum plant has disrupted the F-Series production, a major source of revenue for the company.
- Overpriced vehicles: Ford CEO Jim Farley has admitted the company over-priced some trucks and SUVs, a factor that has contributed to slowed sales and is now being addressed by lowering prices.
- Skilled worker shortage: Ford's CEO has publicly stated that the US is "in trouble" because of a significant shortage of skilled trade workers, which impacts the company's ability to fill critical roles like mechanics. This is a broader concern for the nation's manufacturing capacity, with implications for national security as well as business operations.
- Congress to investigate: Ford's pricing and EV strategies are under scrutiny, and the company's CEO, along with other auto leaders, will be testifying before Congress.
