Ford has issued a recall affecting 119,305 vehicles in the United States after identifying a defect in the engine block heater that increases the risk of engine bay fires. The recall spans 2021–2023 model-year F-150 Lightnings and 2022–2023 Expedition and Navigator SUVs equipped with block heaters in cold-weather packages. Engineering tests revealed that moisture intrusion around the heater element can corrode internal wiring, potentially causing short circuits and localized overheating. This action adds to Ford’s record 2023 recall volume, which has already topped 1.2 million units across multiple campaigns, and underscores growing quality control scrutiny for its North American vehicle lineup.

A newly ratified trade agreement between Canada and China allows up to 50,000 Chinese electric vehicles to enter the Canadian market annually at a reduced 6.1% tariff, down from previous rates exceeding 25%. While the quota represents less than 3% of Canada’s 1.8-million-unit new-vehicle market, policymakers expect that more than half of these imports will carry factory prices below CAD 47,000 within five years. Ford’s domestic EV strategy faces increased pressure as Chinese automakers leverage state-of-the-art battery technology and aggressive pricing. Industry analysts warn that Canadian assembly plants could become staging grounds for further incursions into the U.S. market, forcing Ford to accelerate cost reductions on its next-generation electric pickups and SUVs.

In a dramatic shift, Ford announced a $19.5 billion special charge to realign its electric-vehicle investments and discontinue the current F-150 Lightning production line in 2024. The charge covers battery-manufacturing write-downs, supplier contract adjustments and assembly-line retooling costs. CEO Jim Farley emphasized that the company will focus on hybrid and extended-range technologies where gross margins average 14%, compared with sub-9% for full-BEVs. Ford plans to invest in a Universal EV Platform designed to lower per-unit costs by up to 20%, and to launch a new midsize electric pickup in 2027 with a target factory price near USD 30,000. Management projects that these measures will deliver positive contributions from its EV division by 2029.

Ford’s Model e division recorded a USD 5.2 billion operating loss in 2024, prompting swift action to curb cash burn and improve returns. By redeploying capital toward higher-margin hybrids and rationalizing EV model counts from seven to four core platforms, Ford expects to reduce annual R&D and restructuring spending by USD 2.1 billion by 2026. Executives are targeting a return on invested capital above 8% in its electrified vehicle unit by fiscal 2028. While these targets hinge on ramping up production at two new battery plants in Kentucky and Tennessee and securing raw-material contracts for lithium and nickel, the strategic pivot seeks to restore Ford’s overall automotive operating margin to above 7% by 2025.