Ford Motor Company has entered discussions with bankrupt Ohio-based parts supplier First Brands Group to provide a financing package that would keep the company operational during its Chapter 11 proceedings. According to people familiar with the matter, Ford and General Motors are evaluating a revolving credit facility of up to $150 million, which would bridge First Brands’ cash-flow shortfall while it restructures. First Brands supplies forged and machined components to Ford’s North American powertrain plants, representing roughly 12 percent of Ford’s annual components spend. Executives have stressed that a supplier failure could disrupt production of key models such as the F-150 and Bronco, so maintaining continuity is a top priority for the company’s supply-chain resilience efforts in 2026.

Ford has initiated a voluntary recall of 119,000 vehicles in the United States to address a defect in the engine block heater circuit that could create an electrical short and increase fire risk. Affected models include 2021–2023 variants of the F-150 pickup, Explorer SUV and Mustang Mach-E crossover. Ford estimates the repair will require a software update to the heater’s control module and, in about 10 percent of cases, replacement of wiring harnesses at dealer service centers. This action contributes to what is already a record annual recall volume for Ford, with over 1.2 million vehicles recalled across all campaigns in 2025, and underscores growing scrutiny from the National Highway Traffic Safety Administration on overheating concerns.

In its latest financial filings, Ford disclosed a near-$20 billion special charge to realign its electric-vehicle ambitions, including the discontinuation of the F-150 Lightning in its current form. The charge comprises $8 billion for battery asset impairments, $6 billion to exit manufacturing facilities dedicated to full-EV models, and $5.5 billion in supplier contract write-downs. CEO Jim Farley emphasized that the company will pivot capital toward more profitable hybrid and extended-range models while continuing to accelerate EV volume, targeting a launch of a $30,000 midsize electric pickup on a new Universal EV Platform by 2027. Ford projects that the restructuring will reduce Model-e division losses by 50 percent in 2026 and deliver break-even results by 2029.