Ford Motor Company Sets Record for Recalls in 2025
Ford Motor Company experienced a record-breaking 153 recalls in 2025, affecting nearly 13 million vehicles. This marks a significant increase from 89 recalls in 2024, resulting in warranty costs that have risen sharply as a percentage of revenue.
The company’s Model-e division, responsible for electric vehicles, reported a loss of over $5 billion in 2024, highlighting the challenges faced in the EV market. To address these issues, Ford has initiated a strategic pivot, investing in a low-cost Universal EV Platform and planning to launch a new midsize electric pickup by 2027, estimated to cost around $30,000 and expected to be profitable early in its life cycle.
Despite current setbacks, Ford’s solid balance sheet, lucrative dividend yielding nearly 4.5%, and potential growth linked to innovations in AI and driverless technology present long-term investment opportunities, provided it can navigate its recall challenges and turn around its EV losses.
