Ford CEO Jim Farley can't seem to outrun this $5 billion problem

Core Insights - Ford is experiencing a strong sales year in 2025, but its operating profit has declined significantly [1] - The company's EBITDA for the 12 months ending September 30, 2025, was $9.4 billion, reflecting a 4.55% year-over-year decline [3] - Ford has issued nearly 140 recalls in 2025, significantly impacting its growth potential [10] Sales Performance - Ford's U.S. sales figures show an increase from 1.77 million vehicles in 2022 to 2.08 million in 2024, marking a 4.2% increase [8] - In 2023, Ford sold 1.99 million vehicles, representing a 7.1% increase from the previous year [8] Financial Metrics - The decline in EBITDA from $12.8 billion in 2021 to $9.4 billion in 2025 raises concerns about Ford's financial health [3] - The company anticipates over $1 billion in tariff expenses this year, although its domestic manufacturing mitigates some of the tariff burden compared to competitors [3] Recall Issues - Ford has set a record for recalls, surpassing General Motors' previous record with 89 recalls before July [5] - The company accounted for 35% of U.S. auto recalls in 2025, indicating a significant challenge compared to Stellantis, which accounted for only 12% [10] - The majority of recalls are linked to older vehicle models, complicating Ford's efforts to improve its recall situation [7]