Ford Posts $8.2B Loss Yet Grants All Employees 30% Pay Raise Amid Severe EV Drag

Despite reporting a net loss of $8.182 billion in 2025—the worst in five years—Ford Motor Company announced it would increase the annual bonuses for approximately 75,000 global employees by 30%, resulting in a payout ratio of 130%. The company attributed this decision to its new vehicles achieving the best initial quality in a decade and a significant drop in repair rates within the first 90 days. Full-year revenue reached $187.3 billion, up slightly by 1.23%, but global vehicle sales declined by 2% to 4.395 million units, falling behind BYD and dropping Ford to seventh place globally. The fourth quarter alone saw a staggering loss of $11.2 billion—the company’s worst quarterly performance since 2008. Ford’s electric vehicle division has now accumulated losses exceeding $16 billion and is expected to remain unprofitable through 2026. Nonetheless, Ford expressed optimism for the coming year, forecasting adjusted EBIT (earnings before interest and taxes) to rebound to between $8 billion and $10 billion. Additionally, CEO Jim Farley also serves on the board of McDonald’s Corporation. Notably, Ford China reported an “adjusted full-year EBIT of $6.8 billion,” which differs from the global financial figures due to varying accounting methodologies.