Ford CEO Jim Farley can't seem to outrun this $5 billion problem

Maybe Ford is conscionable getting it each retired of its strategy earlier the calendar flips to January.

The U.S. automotive staple has had a comparatively beardown 2025, with income expected to summation twelvemonth implicit year; however, its operating nett has taken a deed this year.

• 2024: 2.08 cardinal vehicles sold, +4.2%

• 2023: 1.99 cardinal vehicles sold, +7.1%

• 2022: 1.77 cardinal vehicles sold, -2.2%

• 2021: 1.9 cardinal vehicles sold, -6.8%
  Source: Best-Selling Cars

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 interest for Ford, arsenic it has steadily declined from the $12.8 cardinal reported successful 2021.

Tariffs this twelvemonth didn't help. The institution stated that it would incur implicit $1 cardinal successful tariff expenses. Still, since Ford manufactures astir 80% of the vehicles it sells successful the U.S. domestically, its tariff load is importantly little than that of its competitors.

While tariffs are costly, they are not the biggest contented Ford faces going forward.

After a record-breaking year, recalls are the contented that is costing Ford the astir and could derail immoderate of the company's aboriginal maturation plans.

Earlier this year, Ford earned an ignominious favoritism aft it issued its 89th callback of the year before July. The Blue Oval shattered the grounds acceptable by General Motors successful 2014, erstwhile it issued 77 recalls that year.

“We are not satisfied with the existent level of recalls oregon the fig of vehicles impacted. We are moving to trim the outgo of these recalls,” said Chief Operating Officer Kuman Galhorta during the company's 2nd 4th net call.

• 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%)
  Source: Ford

Related: Ford Motor adds to grounds it is embarrassed to hold

Galhorta went connected to accidental that the bulk of its recalls are “tied to vehicles engineered respective years agone earlier we made each the robust process changes crossed our concern system.”

But the contented has lone worsened.

Ford has issued astir 140 recalls so acold this year, according to the National Highway Traffic Administration, meaning the institution is connected way to much than treble GM's record.

While Ford isn’t the lone archetypal instrumentality shaper struggling with recalls successful 2025, it is by acold having the toughest time.

Ford has accounted for 35% of U.S. car recalls this year, according to the National Highway Traffic Administration. Stellantis, successful 2nd spot for the fig of recalls, lone accounted for 12%.