Ford Motor Company (F) Business Profile

What it does

Ford Motor Company designs, manufactures and sells vehicles under the Ford and Lincoln brands. Its range includes internal combustion, hybrid and electric vehicles, from cars and utility vehicles to pickups and commercial vans. It also sells replacement parts, accessories and services that help customers use and maintain their vehicles.

The company serves individual drivers as well as businesses, government agencies and rental companies. Most vehicles reach customers through independently owned dealerships. Ford also provides financing and leasing for vehicle buyers and loans that help dealers purchase inventory.

Ford organizes its automotive business around three groups. Ford Blue focuses on internal combustion and hybrid vehicles for retail customers. Ford Model e develops electric vehicles and software, while Ford Pro sells vehicles and fleet services to commercial and government customers. Ford Credit provides vehicle-related financing and leasing.

The company’s services extend beyond the initial vehicle sale. Fleet customers can buy telematics and charging solutions, while retail customers can purchase extended service contracts and connected-vehicle services. Ford is also developing a battery energy storage business, Ford Energy.

Ford was founded in 1903 and is headquartered in Dearborn. James D. Farley, Jr. is president and chief executive officer. Ford had 169,000 employees in FY2025.

How it makes money

Ford earns most of its automotive revenue by selling vehicles, parts, accessories and services through Ford Blue, Ford Model e and Ford Pro. For most vehicle sales, revenue is recorded when Ford ships a vehicle to a dealer or distributor. The dealer then sells it to the end customer. Ford also sells vehicles to dealers for fleet customers and sells parts through dealers and authorized distributors.

Ford Blue covers retail internal combustion and hybrid vehicles, as well as sales in markets outside the scope of Model e or Pro. Model e sells electric vehicles and develops software and connected-vehicle technology. Ford Pro sells commercial vehicles and services, including fleet telematics and charging. Blue and Model e also manufacture vehicles that Pro sells.

Ford Credit earns revenue mainly from interest on financing receivables and revenue from operating leases. It finances purchases and leases for consumers and businesses, and makes wholesale loans to dealers for vehicle inventory. Ford sometimes subsidizes financing or lease offers to customers; it pays Ford Credit for the discounted terms.

The vehicle sale is not the only opportunity to earn revenue. Parts, service contracts, connected services and software subscriptions generate business after delivery. Extended service contract revenue is recognized over the agreement’s term, and ongoing connectivity revenue is generally recognized over the service period.

Vehicle profitability varies with sales volume, the mix of models and options, net pricing after incentives, material costs and warranty expenses. In 2025, Ford Pro recorded EBIT of $6,843 million, while Ford Model e recorded an EBIT loss of $4,806 million. In the third quarter of 2026, company revenue was $49.5 billion and adjusted EBIT was $2.7 billion.

Customers and how it sells

Ford sells to retail drivers, commercial fleets, daily rental companies and governments. Ford Pro focuses on commercial, government and rental customers, providing vehicles alongside services intended to maintain and manage fleets. Ford Credit finances vehicle acquisitions for individuals and businesses, including leasing companies, government entities and fleet customers.

Substantially all vehicles, parts and accessories pass through distributors and dealers, most of which are independently owned. Dealers sell vehicles to retail and fleet customers, while authorized parts distributors primarily sell to retailers. Ford also depends on third-party dealers for the majority of its connectivity, digital and integrated software service sales, even as it invests in direct-to-consumer methods.

Ford does not depend on a single customer or a few customers whose loss would materially harm the business. In 2025, it sold approximately 4,395,000 vehicles at wholesale worldwide. That measure includes some vehicles made or sold by unconsolidated affiliates whose revenue is not included in Ford’s revenue.

Ford Blue serves markets worldwide. Model e operates in North America, Europe and China, while Ford Pro operates in North America and Europe. Most of Ford Credit’s business is in the United States and Canada; Europe is its largest operation outside the United States. Its largest European markets are the United Kingdom and Germany.

Suppliers and costs

Ford purchases materials from suppliers around the world. These include steel and aluminum, precious metals, plastics, energy, battery materials such as lithium, cobalt and nickel, and rare earth minerals. It relies on batteries and their raw materials for electrified vehicles, and has entered into long-term purchase agreements for some materials.

Many components are available from only one or a limited number of suppliers. Replacing a supplier can require specialized tooling, validation, new contracts and long lead times. Ford’s production can therefore be disrupted when a supplier cannot deliver a component on schedule or to specification. Fires at a major aluminum supplier disrupted production in 2025.

Ford’s costs include materials and components, manufacturing labor, freight, tariffs, engineering, depreciation, regulatory compliance, warranties and recalls. Some costs vary with production volume and mix, while a high proportion of structural costs is relatively fixed. Consequently, a change in wholesale volume can have a significant effect on profitability.

Ford said it had incurred about $1 billion in Novelis-related temporary costs year-to-date through the third quarter of 2026. It also said the operational recovery was largely behind it. For full-year 2026, Ford expects commodity headwinds approaching $2.5 billion year-over-year and continues to target $1 billion in material and warranty cost reductions, excluding Novelis and tariffs.

Competitive position

Ford competes in a worldwide automotive industry with many producers and a growing range of vehicle and service offerings. Customers compare vehicles on price, quality, styling, reliability, safety, fuel efficiency, functionality and reputation. New-model timing and the ability to meet changing preferences also affect Ford’s share.

It was reported on 26 October 2026 that Ford was the third-largest selling automaker in the United States, behind General Motors and Toyota. Ford has also said competition from Chinese manufacturers is most intense for its Ranger business in Latin America and Southeast Asia, and that Europe faces pressure from Chinese competition and excess capacity. Ford designed its Universal EV platform with potential competition from BYD in mind.

Our reading: Ford’s dealer network is a meaningful distribution advantage because it puts vehicles, parts and services in front of customers across many markets, although most dealerships are independently owned. Our reading: Its commercial vehicle and fleet-service offering can support customer relationships beyond the vehicle sale, but competitive pricing and the need to keep services useful limit the strength of that advantage.

Ford said F-Series had the highest retail share among full-size truck brands in the third quarter of 2026. It also said customers combining a software subscription with regular service had about 9 points higher retention, especially for parts. Ford owns or licenses patents, trade secrets, copyrights and trademarks, but does not believe losing any particular intellectual property right would materially affect its business.

Growth opportunities

Ford’s growth plans span vehicles, fleet services, software, parts and energy storage. It is investing in a new generation of vehicles, with a focus on North America, trucks and utilities. Ford said its Super Duty production ramp at Oakville was exceeding planned rates and that it had begun shipping trucks to dealerships. It also plans a midsize pickup for international markets to compete with Chinese manufacturers.

Ford is preparing Fathom, the first vehicle on its Universal EV platform, for launch in Louisville. The company expects the launch in the fourth quarter of 2027. It is investing in that platform while targeting Model e breakeven by 2029; the company expects higher Model e expenses in 2027 as it prepares plants and products.

In services, Ford aims to grow software and parts revenue over the life of a vehicle. It said BlueCruise and connectivity were the largest contributors to software-services revenue growth in the third quarter and year-to-date. Ford Credit and Ford Pro launched commercial leasing in the third quarter, adding it to Ford Pro’s fleet management, software and maintenance offerings.

Ford Energy is initially focused on U.S.-manufactured grid-scale battery storage. Ford expects to bring 20 gigawatt hours of annual capacity online by the end of 2027. It said executed contracts and late-stage negotiations together accounted for more than 80% of Ford Energy’s 2028 capacity; negotiations are not the same as completed contracts.

Ford is targeting an 8% adjusted EBIT margin by 2029 and expects full-year 2026 adjusted EBIT between $10.5 billion and $11 billion.

Structural risks

• Demand and pricing: Vehicle purchases can be deferred when economic conditions weaken or financing, fuel and operating costs rise. Ford’s sales and profitability also depend on competitive pricing, incentives and the mix of vehicles sold. Its relatively fixed structural costs make profitability sensitive to wholesale volumes.
• Supply and production: Shortages, supplier problems, tariffs or transport disruption can interrupt production or raise costs. Some components cannot be quickly or inexpensively sourced elsewhere, and Ford may be unable to recover lost production.
• Quality and warranty: More complex vehicles and new technologies can increase warranty and recall expenses. Launch delays and recalls can also harm Ford’s reputation, while slowing a launch to improve quality can cost sales and profits.
• EV strategy and regulation: EV adoption has been slower than Ford anticipated. Changes in demand have led it to cancel programs, adjust capacity and record charges; emissions and fuel-economy requirements can also increase costs or require changes to its vehicle offerings.
• Financing and funding: Ford Credit relies on funding for its financing and leasing business. Rising interest rates can make funding and competitive customer financing more difficult, potentially reducing its financing margin.
• Digital services: Growth in subscriptions depends on customers activating vehicle modems, adopting services and continuing to pay for them. Software defects, outages, cybersecurity incidents or the loss of third-party content and technology licenses could impair those services or increase costs.

Bottom line

Our reading

Ford combines a vehicle manufacturing business with commercial fleet services, parts, software and a financing arm. Its dealer network and fleet relationships extend its reach beyond the initial vehicle sale, but earnings remain exposed to production volume, pricing and costs. The contrast between Ford Pro’s 2025 profit and Model e’s loss shows both the importance of commercial vehicles and the work involved in the electric-vehicle transition. New platforms and energy storage offer additional avenues for growth, while requiring execution and investment.