Detroit Automakers Face Billions in EV-Related Losses
Written by Emily J. Thompson, Senior Investment Analyst
Updated: 4 days ago
0mins
Should l Buy F?
Source: Fool
- EV-Related Losses: Stellantis faces a staggering $26 billion in losses related to its electric vehicle transition, including $17.5 billion for canceled vehicle programs and $2.5 billion for supply chain adjustments, highlighting significant impacts from market demand shifts and regulatory changes.
- Strategic Adjustments: Ford anticipates losses of approximately $20.9 billion by 2027 due to its revised EV strategy, primarily stemming from the cancellation of the F-150 Lightning electric pickup, reflecting a reassessment of market demand.
- GM's Response: General Motors incurred over $7 billion in EV-related charges in 2025 and expects notable costs in 2026, indicating its strategic adjustments and product line restructuring in the electric vehicle market.
- Market Outlook: Despite facing massive losses, the strategic shifts and heightened market sensitivity of Detroit automakers position them more competitively for the future electric vehicle market, suggesting long-term potential for investors to consider.
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Analyst Views on F
Wall Street analysts forecast F stock price to rise
14 Analyst Rating
3 Buy
10 Hold
1 Sell
Hold
Current: 12.150
Low
11.00
Averages
13.65
High
16.00
Current: 12.150
Low
11.00
Averages
13.65
High
16.00
About F
Ford Motor Company is an automobile company. The Company develops and delivers Ford trucks, sport utility vehicles, commercial vans and cars, and Lincoln luxury vehicles, along with connected services. The Company’s segments include Ford Blue, Ford Model e, Ford Pro, and Ford Credit. The Ford Blue segment primarily includes the sale of Ford and Lincoln internal combustion engine (ICE) and hybrid vehicles, service parts, accessories, and digital services for retail customers. The Ford Model e segment primarily includes the sale of its electric vehicles, service parts, accessories, and digital services for retail customers. The Ford Pro segment primarily includes the sale of Ford and Lincoln vehicles, service parts, accessories, and services for commercial, government, and rental customers. The Ford Credit segment consists of the Ford Credit business on a consolidated basis, which is primarily vehicle-related financing and leasing activities. Its vehicle brands are Ford and Lincoln.
About the author
Emily J. Thompson
Emily J. Thompson, a Chartered Financial Analyst (CFA) with 12 years in investment research, graduated with honors from the Wharton School. Specializing in industrial and technology stocks, she provides in-depth analysis for Intellectia’s earnings and market brief reports.
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See More
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- Partnership Highlights: Ford Motor Company has entered into a long-term agreement with Bread Financial to launch a co-branded credit card and installment loan program aimed at providing personalized payment and lending solutions to qualifying customers, enhancing the ownership experience.
- Innovative Rewards Mechanism: Cardholders can earn 15,000 points (approximately $75 redemption value) for purchases made within the first 90 days, along with a $100 statement credit after spending $1,500 in the same period, thereby boosting customer spending motivation and loyalty.
- Flexible Payment Options: The new financing program offers various flexible payment plans that simplify the purchasing experience on Ford's platforms, enabling customers to finance service and accessory purchases more easily, thus improving overall customer satisfaction.
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See More
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- Significant Revenue Growth: Ford Pro generated over $66 billion in revenue in 2025, with $6.8 billion in earnings before interest and taxes, achieving margins more than three times higher than its traditional Ford Blue business, indicating strong performance and profitability in the commercial market.
- Record Sales Volume: Ford Transit vans achieved record sales in the U.S. market, while Super Duty pickups had their best sales year since 2004, further solidifying Ford's leadership position in the commercial vehicle sector.
- Software Subscription Growth: Ford Pro's paid software subscription business grew by 30% in 2025, providing an additional high-margin revenue stream that enhances overall profitability for the company.
- Improved Repair Efficiency: The Uptime Assist initiative has reduced repair times by 10% to 15%, translating to potential losses of $500 to $1,000 per day for customers when vehicles are down, thereby increasing customer satisfaction and enhancing the attractiveness of Ford Pro's offerings.
See More
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- Partnership Agreement: Ford Motor Company has entered into a long-term agreement with Bread Financial to launch a co-branded credit card and installment loan program, aimed at providing customers with personalized payment, lending, and saving solutions to enhance their financial service experience.
- Flexible Financing Options: The new financing program offers flexible options designed to increase customer accessibility to subscriptions, parts, and services, while also enhancing customer loyalty through a rewards mechanism, thereby driving sales growth.
- Enhanced Customer Experience: According to Rick Cunningham, Senior Vice President of Strategy at Bread Financial, this program is designed to bring immediate value and flexibility to Ford customers, creating a more seamless ownership experience that further boosts customer satisfaction.
- Market Reaction: In pre-market trading on the NYSE, shares of Bread Financial fell by 0.68% to $71.97, reflecting the market's initial response to the new partnership and investor sentiment regarding the collaboration.
See More
Stellantis Leverages Supplier Technologies for New Hybrid SUVs
- Hybrid Market Growth: Stellantis's 2026 Jeep Cherokee features a hybrid system from Toyota-backed Blue Nexus, indicating the company's alignment with the growing demand for fuel-efficient vehicles, which is expected to enhance its competitiveness in the U.S. market.
- Technological Collaboration: The new hybrid system, integrated with Bosch's technology, achieves a fuel economy of 37 mpg for the Jeep Cherokee, making it the most fuel-efficient non-plug-in Jeep ever produced for the U.S., thereby increasing consumer acceptance of hybrid technology.
- Strategic Shift: Stellantis has disclosed $26 billion in charges related to its EV investments, pivoting towards hybrid models to address fluctuations in the EV market and changing consumer demands, demonstrating its adaptability in a dynamic market environment.
- Future Product Plans: The upcoming Ram 1500 extended-range hybrid pickup will offer a total driving range of 690 miles, marking a significant innovation in the light-duty truck segment and is expected to attract consumers with long-distance driving needs.
See More
Ford Partners with Bread Financial for Co-Branded Credit Card Program
- Partnership Highlights: Ford Motor Company has entered into a long-term agreement with Bread Financial to launch a co-branded credit card and installment loan program, aimed at providing personalized payment solutions to qualifying customers, thereby enhancing the ownership experience and accessibility to services.
- Innovative Rewards Mechanism: Cardholders can earn 15,000 points (approximately $75) for purchases made within the first 90 days and receive a $100 statement credit after spending $1,500 in the same period, further incentivizing the use of the credit card and boosting customer loyalty.
- Flexible Payment Options: The new financing program offers flexible payment plans, allowing customers to easily finance service and accessory purchases on Ford's platforms, simplifying the purchasing experience both online and at local dealerships, which enhances customer satisfaction.
- Data-Driven Customer Experience: Bread Financial will leverage data-driven insights to continually enhance the customer experience, reinforcing Ford's commitment to delivering exceptional value at every customer touchpoint, thereby strengthening its market position.
See More
Ford Partners with Bread Financial for Co-Branded Credit Card Program
- Partnership Highlights: Ford Motor Company has entered into a long-term agreement with Bread Financial to launch a co-branded credit card and installment loan program aimed at providing personalized payment and lending solutions to qualifying customers, enhancing the ownership experience.
- Innovative Rewards Mechanism: Cardholders can earn 15,000 points (approximately $75 redemption value) for purchases made within the first 90 days, along with a $100 statement credit after spending $1,500 in the same period, thereby boosting customer spending motivation and loyalty.
- Flexible Payment Options: The new financing program offers various flexible payment plans that simplify the purchasing experience on Ford's platforms, enabling customers to finance service and accessory purchases more easily, thus improving overall customer satisfaction.
- Enhanced Customer Experience: Bread Financial will leverage data-driven insights to continuously optimize the customer experience, reinforcing Ford's commitment to delivering exceptional value at every customer touchpoint and further solidifying customer loyalty.
See More
Stellantis Leverages Supplier Technologies for New Hybrid SUVs
- Market Shift to Hybrids: Stellantis is launching its first North American hybrid Jeep SUV, the Cherokee, in collaboration with Toyota-backed Blue Nexus, marking a strategic pivot in response to the growing demand for hybrid vehicles, which is expected to enhance its market share.
- Technological Collaboration Benefits: The Cherokee utilizes Blue Nexus's two-motor electric continuously variable hybrid transmission, while the upcoming EREV system incorporates key technologies from Bosch, a partnership that not only reduces R&D costs but also accelerates the market introduction of new models.
- Fuel Economy Improvement: With a combined fuel economy of 37 mpg, the Cherokee becomes the most fuel-efficient non-plug-in Jeep ever produced for the U.S. market, a significant achievement that is likely to attract consumers seeking better fuel efficiency and drive sales growth.
- Industry Trend Changes: As demand for hybrid vehicles rises, Stellantis and other automakers are scaling back investments in all-electric vehicles, focusing instead on hybrid technologies to meet consumer expectations for fuel economy, with hybrid vehicles projected to account for 18.4% of U.S. sales this year.
See More
