Why is Ford Motor Company in trouble?

Ford Motor Company, one of the world's largest automakers, is facing significant challenges that threaten its long-term viability. The company's struggles are the result of a combination of factors, including declining sales, increased competition, and the need to adapt to rapidly changing industry trends.

Declining Sales and Market Share

Ford's sales have been declining in recent years, both in the United States and globally. The company's market share has dropped as competitors, particularly Asian and European automakers, have gained ground. This is due in part to Ford's perceived lack of innovation and its reliance on traditional models that have become less appealing to consumers. 1 2

Increased Competition and Changing Industry Trends

The automotive industry is undergoing a significant transformation, with the rise of electric vehicles, autonomous driving, and shared mobility services. Ford has struggled to keep up with these changes, lagging behind competitors in the development and adoption of new technologies. This has made it difficult for the company to remain competitive in the rapidly evolving market. 3 4

Restructuring and Cost-Cutting Efforts

In an effort to address its challenges, Ford has undertaken a major restructuring and cost-cutting initiative. The company has announced plans to close factories, eliminate thousands of jobs, and shift its focus towards more profitable models and segments. However, these efforts have been met with skepticism, as some analysts believe they may not be enough to turn the company around. 5 6

The Path Forward

To overcome its current difficulties, Ford will need to take bold steps to reinvent itself and adapt to the changing industry landscape. This may involve significant investments in new technologies, a renewed focus on innovation, and a more agile and responsive approach to the market. The company's success will depend on its ability to anticipate and respond to the evolving needs and preferences of consumers. 7 8

Overall, Ford's current troubles are a reflection of the broader challenges facing the automotive industry. The company's ability to navigate these challenges and emerge as a stronger, more competitive player will be crucial to its long-term success.

What is Ford discontinuing in 2025?

Yes, Ford is implementing layoffs in 2025, with recent and announced cuts including temporary layoffs at the Kansas City and Louisville plants due to supply shortages and factory conversions, and some software-related salaried positions. These events, along with potential future job cuts, are part of the company's ongoing efforts to restructure and fund its electric vehicle investments.
 
Recent and announced layoffs

• Kansas City Assembly Plant: Hundreds of workers were notified of layoffs in late October 2025 due to a disruption in the aluminum supply chain caused by a fire at an aluminum plant in New York. These layoffs are expected to be temporary. 
• Louisville Assembly Plant: Over 2,000 workers are expected to be temporarily laid off for up to 10 months. The plant is undergoing a transition to build electric vehicles. 
• Connected Vehicle Software Team: Ford cut nearly 350 software jobs in the US and Canada in May 2025 to improve efficiency and reorganize the team. 

Potential future layoffs

• Salaried workers: A report from August 2025 indicates potential multi-phase, salaried layoffs targeting the Model e (EV division), Ford Pro, legacy operations in North America, and Europe. 

Reasons for layoffs

• Supply chain disruptions: Recent temporary layoffs have been a direct result of supply shortages, such as the one caused by the New York aluminum plant fire. 
• EV and restructuring efforts: Ford is restructuring to focus on its electric vehicle business, which has led to both job cuts and new hires in different areas. 

Is Ford getting out of the car business?

The End of an Era
By 2022, Ford had phased out nearly all car production in the U.S., focusing instead on best-selling models such as the F-Series trucks and Explorer SUVs.

What Ford engines are under investigation?

The main Ford engine under investigation was the 2.7L and 3.0L EcoBoost V6 engines in 2021-2022 models of the F-150, Bronco, Edge, Explorer, and Lincoln Aviator and Nautilus, due to a defect causing intake valve fractures that led to engine failure. This specific investigation by the NHTSA has since been closed after Ford issued a recall and extended warranties, but a separate recall was issued more recently for certain 2020-2024 Ford Escape and 2021-2023 Lincoln Corsair plug-in hybrid models. 
Previously investigated engines (Investigation closed) 

• Engine: 2.7L and 3.0L EcoBoost V6 engines 
• Affected vehicles: 2021-2022 Ford F-150, Bronco, Edge, Explorer, and Lincoln Aviator and Nautilus 
• Reason: Intake valves could fracture due to a manufacturing issue, leading to engine failure 
• Status: Investigation closed by the NHTSA, as Ford initiated a recall and extended warranties 

Currently recalled engines

• Engine: 2.5L engine in plug-in hybrid models
• Affected vehicles: Certain 2020-2024 Ford Escape and 2021-2023 Lincoln Corsair models
• Reason: Specific safety concern identified by Transport Canada
• Status: A recall has been issued 

Why is Ford having so many issues?

The higher number of recalls by Ford is most likely due to its new testing and procedures, as well as outside pressure. So far in 2025, Ford has issued recalls in 11 component categories, and not all were a result of vehicle quality testing.