Ford Motor Company Executive Chairman Bill Ford, great-grandson of founder Henry Ford, told shareholders at the company’s annual meeting that he takes ‘immense pride’ in the organization his family built over 120 years. He noted that Ford has produced more than 350 million vehicles worldwide and operates 64 manufacturing facilities across 21 countries. Under his leadership, the company has maintained a dividend payout ratio near 25% of net income over the past five years, reflecting consistent cash flow generation from legacy internal-combustion models such as the F-Series trucks.

Chief Executive Jim Farley conceded that overcommitment to battery-electric vehicles strained production capacity and led to a 15% inventory buildup early in 2025. Farley said Ford will recalibrate its EV roadmap by shifting 20% of planned battery capacity toward hybrid models and software upgrades for existing electric architectures. He also confirmed that Ford Racing will re-enter Formula One in 2026 with a purpose-built hybrid power unit, targeting a 15% improvement in energy recovery on straights compared with current competitors.

People familiar with the negotiations told the Wall Street Journal that Ford is discussing a contract to purchase BYD’s iron-phosphate battery cells for use in hybrid powertrains at factories in Europe and Asia. The proposed deal would allow Ford to defer investment in new cell-manufacturing capacity, potentially saving up to $1.5 billion in capital spending through 2027. Hybrid vehicles currently account for 18% of Ford’s global electrified volume, and management expects that share to rise to 30% by 2028 if the BYD agreement is finalized.

To offset softening EV demand, Ford announced in December that it will convert its Kentucky EV battery plant—built with SK On at a cost of $6 billion—into a dedicated energy storage facility. The company will also allocate 15% of capacity at its Marshall, Michigan, battery complex for residential and commercial storage modules. Ford has invested roughly $10 billion in its two battery factories to date and plans an additional $2 billion by 2027 to expand its energy storage business, which management projects could generate $1.2 billion in annual revenue by 2030.