Ford Motor Company has joined General Motors in negotiations with bankrupt auto parts supplier First Brands Group to structure a rescue financing package that would allow the Ohio-based company to continue operations under Chapter 11. According to people familiar with the situation, the talks—reported by the Financial Times on Monday—could involve a combination of debtor-in-possession loans and equity commitments. First Brands, which employs roughly 2,500 workers across six U.S. plants, filed for bankruptcy protection in late January after supply-chain pressures and rising raw-material costs pushed its liabilities above $300 million.

In its latest safety action, Ford has issued a recall affecting more than 119,000 vehicles in the United States to address an engine block heater defect that can cause overheating and increase fire risk. The recall covers select 2021–2023 model year pickups and SUVs equipped with optional block heaters. Ford noted that the heater’s thermostat can fail in the closed position, leading to wiring damage. This marks Ford’s 27th recall in the past 12 months, exceeding its prior annual high of 24 recalls set in 2019.

Ford announced a near $20 billion special charge to realign its electric-vehicle strategy, largely driven by slower-than-expected EV adoption in North America. The charge includes write-downs related to the discontinuation of the F-150 Lightning in its current form—originally launched in 2022—and reductions in planned spending on full-battery EV programs. CEO Jim Farley emphasized that Ford will shift capital into hybrids and extended-range vehicles while still bringing more than a dozen EV models to market by 2026. The restructuring is expected to reduce Ford’s EV capital expenditures by roughly 30% over the next two years.

A new Canada-China trade agreement allows up to 50,000 Chinese electric vehicles into the Canadian market annually at a 6.1% tariff rate, down from previous levels exceeding 30%. Although this volume represents less than 3% of Canada’s annual new-vehicle market, industry analysts warn it could serve as a beachhead for Chinese automakers targeting the U.S. market. With major Chinese EV models priced under $35,000, Ford’s midsize electric offerings—currently starting above $45,000—could face intensified pricing pressure. Investors will be watching Ford’s planned $30,000 electric pickup, slated for a 2027 launch, to see if it can counter this emerging threat.