Maybe Ford is just getting it all out of its system before the calendar turns to January.
The US auto sector has had a relatively strong 2025, with sales expected to increase year over year; However, its operating profit has taken a hit this year.
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2024: 2.08 million vehicles sold, +4.2%
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2023: 1.99 million vehicles sold, +7.1%
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2022: 1.77 million vehicles sold, -2.2%
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2021: 1.9 million vehicles sold, -6.8%
Source: Best Selling Cars
Ford Motor’s EBITDA for the 12 months ended September 30, 2025 was $9.4 billion, a year-over-year decrease of 4.55%.
Falling EBITDA has been a persistent concern for Ford, as it has steadily declined from the $12.8 billion reported in 2021.
This year’s tariffs didn’t help. The company said it would incur more than $1 billion in tariff costs. Still, since Ford manufactures about 80% of the vehicles it sells in the United States in the country, its tariff burden is significantly lower than that of its competitors.
While tariffs are costly, they are not the biggest problem Ford faces going forward.
After a record year, recalls are Ford’s biggest problem and could derail any of the company’s future growth plans.
Earlier this year, Ford earned an ignominious distinction after issuing its 89th recall of the year before July. The Blue Oval broke the record set by General Motors in 2014, when it issued 77 recalls that year.
“We are not satisfied with the current level of recalls or the number of vehicles affected. We are working to reduce the cost of these recalls,” Chief Operating Officer Kuman Galhorta said during the company’s second-quarter earnings conference call.
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Ford F-150 Lightning: 1,006 (-72%)
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Ford Mustang Mach-E: 3,014 (-49%)
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Ford SUV: 55,888 (-3.7%)
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ford bronco: 11,045 (+7%)
Source: Ford
Related: Ford Motor adds to a record it is ashamed to maintain
Galhorta went on to say that the majority of their recalls are “tied to vehicles designed several years ago before we made any robust process changes in our industrial system.”
But the issue has only gotten worse.
Ford has issued nearly 140 recalls so far this year, according to the National Highway Traffic Administration, meaning the company is on track to double GM’s record.
While Ford is not the only OEM struggling with recalls in 2025, it is by far the most difficult time.
Ford has accounted for 35% of U.S. auto recalls this year, according to the National Highway Traffic Administration. Stellantis, which ranks second in the number of recalls, only accounted for 12%.
On Friday, Ford added to its ignominious record when it announced a recall of 272,645 vehicles in the U.S. due to a loss of the parking function that could cause the vehicle to roll, increasing the risk of an accident.
The company is recalling certain 2022-2026 F-150 Lightning BEV, 2024-2026 Mustang Mach-Es and 2025-2026 Maverick vehicles because the integrated parking module may not lock in the park position when the driver moves it there, NHTSA said.
Related: Ford CEO Subtly Attacks Tesla Cybertruck After $20 Billion Hit
However, this is one of the recalls that can be fixed with a software update, so the parking module software will be updated over the air or through dealers for free.
This is at least the second Ford recall of December. Two weeks ago, NHTSA announced a Ford recall of 108,762 vehicles due to a poorly secured liftgate hinge that could come off.
That recall covered certain 2020-2022 Escape and 2025 Escape models. Separately, Lincoln, Ford’s luxury division, also recalled nearly 12,000 Lincoln MKT vehicles because a driver and front passenger door trim could come off, increasing the risk of an accident.
Ford says the Escape’s problem occurred during the assembly process when the hinge covers were not properly secured. Ford’s assembly process has come under scrutiny in the past and the company says it is on its way to fixing the problem.
Ford is aware of its quality control issues, and Chief Financial Officer Kumar Galhotra addressed the issue during his comments on the company’s third-quarter earnings conference call.
“Improving quality is the main driver for closing our cost gap. Better quality
it reduces warranty expenses and reduces recalls,” Galhotra said.
Ford says it’s already making progress and is “on track” toward best-in-class performance in six of its brands, with three other brands in the top quartile, according to warranty analysis data from JD Power.
The company also reported lower year-over-year warranty costs in the third quarter, down $450 million.
In 2023, Ford spent $4.8 billion repairing its customers’ vehicles, a 15% increase from the previous year. He set aside $1,203 for warranty repairs on every car he sold that year, according to Guarantee Week.
A recent study by iSeeCars.com, analyzing 31 years of recall history, found that Ford is the least proactive auto brand when it comes to issuing recalls. Less than 30% of cars recalled over the past three decades were due to a problem that Ford found on its own.
To remedy this problem, in 2024, Ford began a new quality assurance program that incorporates “testing vehicles to failure,” running them “at extremely high mileage” to find potential problems before customers do.
At the time, CEO Jim Farley said the new approach would “reduce warranty (costs) over time.”
This story was originally published by TheStreet on December 20, 2025, where it first appeared in the Automotive section. Add TheStreet as a preferred source by clicking here.
