The Federal Deposit Insurance Corporation has granted deposit insurance to Ford Motor Company’s newly formed banking subsidiary, clearing a critical regulatory hurdle. This approval enables Ford to expand into financial services such as auto lending, lease financing and deposit products, leveraging its existing customer base of more than 28 million vehicles on the road. Executives project that the industrial bank will support growth in captive finance receivables—currently totaling approximately $110 billion—while improving funding flexibility and reducing reliance on wholesale funding markets by up to $15 billion annually.

Ford has initiated a recall affecting 119,075 U.S. vehicles dating from model years 2013 through 2024 after regulators identified an engine block heater defect that can crack, leak coolant and short circuit underhood wiring. The action covers six models, including the Focus, Escape, MKC and Explorer lines. Owners will be notified by February 13, 2026, and dealerships will replace the faulty heater assemblies free of charge. Ford estimates addressing the issue will incur recall-related costs of up to $60 million, though it expects warranty reserves to cover the full expense.

Last year, Ford’s share value rose by 33% as the company shifted focus away from large battery-electric programs toward hybrids and traditional combustion models. Management announced the discontinuation of the electric F-150 Lightning and canceled certain full-size electric truck projects, opting instead for a mixed portfolio that includes plug-in hybrids and smaller, lower-cost EVs. While this decision generated a $19.5 billion non-cash impairment charge, Ford reported that adjusted operating income excluding this charge held steady at around $8 billion through the first three quarters. Analysts now forecast a return to profit growth in 2026, projecting adjusted earnings of $1.52 per share, up from an expected $1.10 in 2025.