Major U.S. automakers, including Ford, General Motors and Stellantis, publicly endorsed the Trump administration’s proposal to loosen Corporate Average Fuel Economy (CAFE) requirements through model year 2026, while urging the National Highway Traffic Safety Administration to adjust fleetwide targets. In their joint letter submitted Wednesday, the companies praised the administration’s intent to lower the annual improvement rate from 5% to 1.5%, but requested flexibility mechanisms such as adjusted credit carry-forwards and relaxed light-truck targets in rural markets. Ford highlighted that stricter rules would require an additional $9 billion in annual powertrain investment through 2026, potentially raising vehicle sticker prices by $1,200 per unit, and cautioned that unscalable electric vehicle mandates risk distorting consumer demand and production planning.

Ford reported U.S. retail deliveries of 135,362 vehicles in January, down 5.3% year-over-year, driven by supply-chain constraints in its electric vehicle (EV) lineup and decreased rental channel orders. The company noted that hybrid and plug-in hybrid models saw flat volume versus January 2023, while battery-electric models declined 8% on a year-over-year basis. Executives attributed the EV slowdown partly to slower ramp-up of the new F-150 Lightning and Mustang Mach-E restructuring, offset by strength in the Escape Hybrid, which posted a 12% gain. Ford warned that first-quarter wholesale shipments may fall 3–5% sequentially if supply-chain disruptions persist.

Analysts expect Ford to report fourth-quarter adjusted operating margin near 6.5%, down from 7.8% a year ago, as North American commodity costs rose 4% and industry-wide incentives climbed by $700 per unit. Consensus revenue forecasts of $44.8 billion imply a 2% decline year-over-year, reflecting softer SUV and truck volume. Management is set to lower 2025 adjusted free cash flow guidance to $2.0–3.0 billion from prior expectations of $3.5–4.5 billion, citing elevated capital expenditures for EV capacity expansion in Kentucky and Tennessee, and ongoing pricing pressure in key segments. Long-term revenue growth is projected at mid-single digits, but market share is anticipated to remain flat in the U.S. at 15.7%.

Ford is in advanced discussions with China’s Geely Automobile to grant Geely access to its Valencia, Spain, assembly plant for production of right-hand-drive models destined for European markets, according to people familiar with the matter. The talks, which have been ongoing for several months, also cover joint development of automated-driving systems and next-generation electric-powertrain architectures. Ford dispatched a senior delegation to Hangzhou in January to accelerate agreements on technology licensing fees, estimated at €200 per vehicle, and to negotiate capacity commitments that could scale to 150,000 units annually by 2027. Executives view the partnership as a way to offset capital intensity in EV rollout while preserving European production jobs under local content rules.