US automaker Ford Motor's vehicle sales inched up in the second quarter, but an $800mn tariff charge contributed to the Michigan-based company's loss.
The automaker faced 25pc US tariffs on imported vehicles and car parts in the quarter, causing it to revise its full-year guidance to include a $2bn "tariff headwind," according to Ford's second quarter earnings report released 30 July.
Ford sold 1.19mn vehicles in April to June, up by about 4pc from a year earlier, led by higher volumes in the company's commercial fleet segment.
Ford internal combustion engine segment sold 696,000 vehicles, a 6pc decrease from the second quarter last year. Its electric vehicle (EV) business sold 60,000 vehicles in the quarter, a 128pc increase from a year earlier.
In the US, Ford's second quarter EV sales shrank to about 16,000 vehicles, down by 31pc, as the company focused more on hybrid and gas-powered engines. Its US sales of internal combustion engine vehicles reached 529,000, up by 16pc from the second quarter of 2024.
Ford praised the US Environmental Protection Agency's 29 July proposal to repeal greenhouse gas emissions limits on vehicles. The company said the rollback could give it more flexibility with its product mix.
Still, Ford is not abandoning EVs. It plans to reveal a new EV design and platform in Kentucky on 11 August.
"This is a Model T moment for us at Ford," chief executive Jim Farley said. "A chance to bring a new family of vehicles to the world that offer incredible technology, efficiency, space and features."
Ford lost $36mn in the second quarter, compared to a $1.8bn profit in the same quarter a year earlier. It attributed part of the loss to a previously announced cancellation of an EV program.
