Fiscal period ending 2025-12-31 versus 2024-12-31
— view filing on EDGAR →
Ford's risk profile deteriorated broadly in 2025 across five or more distinct themes, with theoretical risks converting to realized, documented disruptions. Supply chain damage from aluminum supplier fires and China rare earth export restrictions, tariff-driven production stoppages and cash flow uncertainty, elimination of EV tax credits and state ZEV authority, a binding NHTSA consent order with third-party oversight, and a concrete EV strategy reversal with associated charges collectively represent a pervasive worsening. No meaningful easing offsets this deterioration.
7 company-specific
· 1 common-mode
Company-specific changes
Revised
Added concrete 2025 example of major aluminum supplier fires disrupting production with ongoing effects. Also added China rare earth export restrictions causing actual production disruptions and cost increases. These specific, realized incidents materially escalate the supply chain risk from theoretical to demonstrated.
Ford is highly dependent on its suppliers to deliver components in accordance with Ford’s production schedule and specifications, and a shortage of or inability to timely acquire key components or…
Revised
Congress eliminated U.S. EV purchaser tax credits in 2025, materially reducing demand incentives and Ford's competitive positioning in EV market.
Financial Risks The impact of government incentives on Ford’s business has been and could continue to be significant, and Ford’s receipt of government incentives could be subject to reduction…
Revised
New disclosure of 2025 federal legislation eliminating California/state authority over emissions and ZEV standards, plus write-offs of compliance credits, materially shifts regulatory risk and compliance strategy.
Ford may need to substantially modify its product plans and facilities to respond to shifting consumer sentiment and competitive dynamics as a result of policy changes affecting, or otherwise to…
Revised
Tariffs shifted from prospective threat to implemented reality with documented adverse effects. New disclosure of actual production disruptions, cost increases, and cash flow uncertainty from tariff relief timing.
Macroeconomic, Market, and Strategic Risks With a global footprint and supply chain, Ford’s results and operations have been and could continue to be adversely affected by economic or geopolitical…
Revised
Added specific 2025 EV strategy shift, BlueOval SK disposition, and expected charges. Expanded supplier litigation/investigation exposure. Concrete recent events escalate abstract risk.
Ford may not realize the anticipated benefits of existing or pending strategic alliances, joint ventures, acquisitions, divestitures, commercial relationships, or business strategies or the benefits…
Revised
Added specific 2024 NHTSA consent order with independent third-party oversight; expanded regulatory enforcement language; escalated litigation prevalence in international markets.
Legal and Regulatory Risks Ford and Ford Credit have experienced and could continue to experience unusual or significant litigation, governmental investigations, or adverse publicity arising out of…
Revised
New disclosure of 2024 NHTSA consent order with independent third-party oversight requirement. Escalates regulatory risk and monitoring obligations beyond prior general reference.
Ford’s products have been and could continue to be affected by defects that result in recall campaigns, increased warranty costs, or delays in new model launches, and the time it takes to improve…
Also disclosed — common-mode (AI regulatory compliance)
AI regulatory compliance
Revised
Added material new risks: subscriber retention focus, data privacy/AI regulatory costs, third-party cloud infrastructure dependencies, and dealer-dependent sales channel risks.
Failure to develop and deploy secure digital services that appeal to customers, retain existing subscribers, and grow our subscription rates could have a negative impact on Ford’s business. A…