Ford Motor Company (F): Business Model Canvas [Dec-2025 Updated]

You're trying to map out where Ford Motor Company is headed in late 2025, and honestly, it's not one company anymore; it's three distinct battles being fought under one roof: the reliable ICE/Hybrid business (Blue), the high-stakes EV push (Model e), and the cash-cow commercial unit (Pro). We're looking at a massive strategic pivot, evidenced by the projected $9 billion in capital expenditures this year, all while the company guides for an adjusted EBIT between $6.0 billion and $6.5 billion-that's the tightrope walk right there. To really see how they're balancing the legacy strength of the F-Series with the future bet on low-cost EVs and the software revenue from Pro's over 818,000 paid telematics subscribers, you need to break down the whole machine. Dive into the full Business Model Canvas below to see the key partnerships, resources like the $100 billion in finance receivables, and the exact value propositions driving this complex transformation.

Ford Motor Company (F) - Canvas Business Model: Key Partnerships

You're looking at the core alliances that keep Ford Motor Company's production and service lines moving as of late 2025. These aren't just handshake agreements; they represent billions in capital and critical supply chain stability.

BlueOval SK (SK Innovation) for US battery cell manufacturing.

The joint venture with SK Innovation represents a massive commitment to domestic EV battery production. The total planned investment between Ford Motor Company and SK Innovation is $11.4 billion, with Ford contributing around $6.95 billion and SK Innovation providing $4.45 billion. This effort targets three new battery plants with a combined planned annual capacity of 129 GWh. Specifically, the BlueOvalSK Battery Park in Hardin County, Kentucky, involves a $5.8 billion investment for two plants, aiming to create 5,000 Kentucky jobs. Production of the advance lithium-ion batteries at these facilities is targeted to begin in 2025.

CATL for licensed Lithium Iron Phosphate (LFP) battery technology.

Ford Motor Company is building its first automaker-backed LFP battery plant in Marshall, Michigan, utilizing knowledge and services licensed from China's CATL. Ford is investing $3.5 billion in this facility, which is expected to have an initial annual capacity of 35 gigawatt-hours, enough for approximately 400,000 vehicles a year. The company expected roughly $700 million in federal tax credits to offset the cost of this $3 billion plant investment. Production at the Marshall facility is slated to start in 2026, adding approximately 35 GWh of new U.S. battery capacity.

Here's a quick look at the scale of the battery manufacturing partnerships:

Dealership network for sales, service, and local customer reach.

Most of Ford Motor Company's vehicles, parts, and accessories move through its network of independently owned distributors and dealers. As of the end of fiscal year 2024, Ford Motor had only 9,000 total dealerships globally, a reduction of nearly 25% from 12,000 locations in 2014. In the U.S. specifically, Ford has 2,832 locations as of 2025. The Ford brand dealerships accounted for 91% of the global total at the end of FY 2024. The Global Ford CAR Dealer Market Size was valued at 14.3 USD Billion in 2024.

ServiceTitan for integrating Ford Pro vehicle data into fleet workflows.

Ford Pro announced a multi-year collaboration with ServiceTitan in September 2025 to integrate fleet management services. This uses embedded modems in model year 2020 and newer Ford commercial vehicles to combine Ford Pro Data Services with ServiceTitan's Fleet Pro Software. Ford Pro processes over 1 billion data points daily from its commercial vehicles. Honestly, nearly half of ServiceTitan's customer base operates Ford commercial vehicles, making this integration a key efficiency play.

Suppliers for critical components like semiconductors and aluminum.

Supply chain volatility hit hard in late 2025, particularly with aluminum. A September fire at the Novelis Oswego, New York, plant, which supplies roughly 40% of the aluminum sheet for the U.S. auto industry, is expected to cost Ford between $1.5 billion and $2 billion before taxes and interest for the year. This disruption impacted production of the F-Series trucks, leading Ford to cut its full-year 2025 adjusted EBIT projection to between $6 billion to $6.5 billion, down from earlier guidance. Ford anticipates losing up to 100,000 units of production in 2025 due to the shortage. The company plans to add 1,000 jobs at its Michigan and Kentucky plants to recover about half of that lost volume in 2026.

Ford Pro, the commercial segment, generated an EBIT of $2.3 billion on $18.8 billion in revenue in the second quarter of 2025, with a margin of 12.3%.

Finance: draft 13-week cash view by Friday.

Ford Motor Company (F) - Canvas Business Model: Key Activities

Manufacturing and assembly of ICE, Hybrid, and Electric Vehicles (EVs) remains central, balancing powertrain options based on market pull. In the second quarter of 2025, Ford Motor Company total sales reached 612,095 units, growing 14.2% year-over-year, capturing an estimated market share of 14.3%. Electrified vehicles, which include hybrid, plug-in hybrid, and electric models, accounted for 82,886 units, representing 13.5% of the total mix in that quarter. For the year to date through November 2025, Ford sold 1.99 million vehicles, a 6% increase year-over-year. However, U.S. EV sales specifically saw a sharp decline in November 2025, falling 60.8% to 4,247 units.

Developing the low-cost Universal EV platform is being driven by the dedicated Skunkworks team. The first affordably priced vehicle resulting from this team, a mid-sized electric pickup, is scheduled for arrival in 2027. This development follows the cancellation of a previously planned all-electric three-row SUV program.

Software and connected services development is a key activity supporting the commercial segment, primarily through Ford Pro telematics. Ford Pro Intelligence active paid software subscriptions surpassed 750,000 active users by the second quarter of 2025, growing more than 20% year-over-year in that quarter. Furthermore, the BlueCruise hands-free highway driving system logged over 6 million cumulative hours by the end of the second quarter of 2025.

Managing the three distinct business units-Blue, Model e, and Pro-requires distinct operational focus, as reflected in their financial reporting. The company reported $50,534 million in Total Revenue for the third quarter of 2025.

Here's a look at the segment performance data available for the first half or recent quarters of 2025:

Global supply chain management and vertical integration of battery production are critical for cost control. Ford is moving some Mustang Mach-E battery production from Poland to Holland, Michigan, in 2025 to qualify for Inflation Reduction Act benefits. The BlueOval SK joint venture's Kentucky 1 plant is targeting cell production for the current E-Transit and F-150 Lightning starting in mid-2025. The Tennessee facility, BlueOval SK at BlueOval City, is set to produce cells starting in late 2025 for the new electric commercial van. Lithium iron phosphate (LFP) battery production is slated to begin at BlueOval Battery Park Michigan in 2026.

The company's overall battery capacity strategy has seen adjustments:

• Planned battery capacity was reduced by 35% two years prior to late 2025.
• The BlueOvalSK joint venture was initially planned to produce approximately 60 GWh annually starting mid-decade.
• Ford's global target for annual production capacity by 2030 remains up to 240 GWh.
• The company expects to reduce EV battery cell cost to $80 per kilowatt-hour at the pack level well before the end of the decade.

Ford projects up to $5.5 billion in losses for its electric vehicle and software operations for the full year 2025.

Ford Motor Company (F) - Canvas Business Model: Key Resources

You're looking at the core assets Ford Motor Company relies on to execute its strategy as of late 2025. These aren't just line items on a balance sheet; they are the engines of their current and future operations. Honestly, understanding these tangible and intangible assets is step one for any deep dive into their valuation.

Iconic Brands: Ford F-Series, Mustang, and Lincoln

The strength of the Ford brand is undeniable, especially in its truck and performance segments. The F-Series lineup remains a powerhouse, leading the US market. Through November 2025, the F-Series moved 749,471 units year-to-date, showing a 9.3% increase over the same period in 2024. The electric F-150 Lightning, while not included in that total, moved 1,006 units in November alone. The Mustang nameplate also shows vitality, with its sales climbing 78.6% in November 2025 compared to November 2024, contributing 4,207 units for the month. The Lincoln luxury brand, though smaller in volume, supports the premium side of the portfolio. The Explorer SUV also retained its mid-size SUV champion spot, with sales climbing 33% in Q3 2025.

Here's a quick look at how some key nameplates performed through November 2025 year-to-date:

Global Manufacturing Footprint and Assembly Plants

Ford Motor Company maintains a vast, geographically diverse manufacturing base, though recent strategic shifts point to increased investment in the US South for EV components. The company had 177,000 employees worldwide as of 2025, supporting operations across North America and in over 125 countries. Key US assembly locations include the Chicago Assembly Plant (Explorer, Ranger, Mustang, Bronco, Super Duty), the Kansas City Assembly Plant (F-150, Transit), and the Louisville Assembly Plant in Kentucky, which is slated to assemble the new midsize electric pickup starting in 2027. This Louisville investment is nearly $2 billion, securing 2,200 hourly jobs there. Globally, facilities like the AutoAlliance Thailand plant, a joint venture, produce models like the Ford Ranger (T6). The company is also heavily investing in battery production, with the BlueOval Battery Park Michigan facility representing a $3 billion investment to produce prismatic LFP batteries.

Ford Credit's Substantial Finance Receivables

Ford Credit, the financial services arm, is a critical resource for supporting vehicle sales. While the figure you mentioned is higher, the actual reported finance receivables are still substantial. For the third quarter of 2025, Ford Credit finance receivables, net of allowance for credit losses, stood at $59,786 million. Ford Credit reported third-quarter 2025 earnings before taxes (EBT) of $631 million, a 16% increase compared to the prior year. This captive finance operation provides essential liquidity and sales support, especially as the company navigates the shift in vehicle mix.

Intellectual Property (IP) in Battery Tech and SDV Architecture

The push for software-defined vehicles (SDVs) and cost-competitive EVs hinges on proprietary technology. Ford is investing heavily, including a $3 billion investment in the Michigan LFP battery facility, using technology licensed from China's CATL. The new Universal EV Platform, which will underpin the next generation of affordable EVs, is designed around a zonal E/E architecture (electrical/electronic). This new architecture is key to the SDV vision, resulting in a wiring harness that is 1.3-km shorter and 10 kg lighter than previous designs, directly addressing past cost and complexity issues, like the 70-pound overweight harness on the Mustang Mach-E. The first vehicle on this platform, a midsize pickup, targets a price close to $30,000.

Skilled Engineering Talent, Including the Dedicated EV 'Skunkworks' Team

Talent acquisition, particularly in EV development, is a major asset. Ford's dedicated EV 'Skunkworks' team, now based in the 250,000-square-foot Electric Vehicle Development Center (EVDC) in Long Beach, California, is central to this effort. This team currently comprises 350 engineers, designers, and technical experts, many recruited from competitors like Tesla, Rivian, and Apple, with plans to add 100 more. This integrated team is tasked with developing the low-cost EV platform to match the cost structure of Chinese manufacturers operating in Mexico. It's definitely a focused group.

Ford Motor Company (F) - Canvas Business Model: Value Propositions

You're looking at the core reasons customers choose Ford Motor Company right now, late in 2025. It's a story of three distinct businesses, each with its own value proposition, all underpinned by a strong financial base and digital services.

The value proposition is segmented to address different customer needs, which is reflected in the financial performance of each unit.

Ford Pro delivers durable profits by focusing on commercial customers. This segment generated an EBIT of $2.0 billion on revenue of $17.4 billion in the third quarter of 2025, with an EBIT margin of 11.4%. A key part of this value is the recurring revenue from software; paid software subscriptions reached 818,000 in Q3 2025, growing 8% sequentially. Software and physical services accounted for 17% of Ford Pro's EBIT on a trailing 12-month basis as of Q2 2025.

For the traditional lineup, Ford Blue provides the high-margin bedrock. This segment posted an EBIT of $1.5 billion in Q3 2025. The strength here is evident in product performance: F-Series sold 207,732 units in Q3, bringing its year-to-date total to 620,580 trucks. Furthermore, the electrified offerings within this segment are growing fast, with hybrid, PHEV, and BEV sales reaching 85,789 units in Q3, representing 15.7% of the total mix.

The Ford Model e segment's value proposition centers on future competitiveness. While it reported a third-quarter EBIT loss of $1.4 billion, the focus is on achieving cost parity with Chinese original equipment manufacturers (OEMs). The first vehicle on the new low-cost platform, expected to be a midsize electric pickup, is targeted to match the cost structure of Chinese OEMs building in Mexico. This segment is seeing volume acceleration, with wholesale volumes up 128% year-over-year in Q2 2025, driving revenue to $2.4 billion in that quarter.

Digital services are a cross-segment value driver, enhancing the ownership experience and creating high-margin revenue streams. This includes over-the-air (OTA) software updates and digital customization features. For instance, BlueCruise hands-free highway driving has now exceeded 7 million cumulative hours of use as of Q3 2025. In Q1 2025, paid subscriptions were up 20%, and telematics revenue per unit was up 40%.

Overall market presence remains significant, with Ford Motor Company reporting a strong US market share of 12.8% for the third quarter of 2025, as per the outline. This performance contributed to a record total company revenue of $50.5 billion in Q3 2025, up 9% year-over-year. The company maintained a robust balance sheet, ending Q3 with nearly $33 billion in cash and $54 billion in liquidity.

Here's a quick look at the digital service growth:

• Ford Pro paid software subs (Q3 2025): about 815,000.
• Ford Pro paid software subs (Q3 2025): up 30% year-over-year.
• BlueCruise cumulative hours (Q3 2025): exceeded 7 million.
• Q1 2025 telematics revenue per unit: up 40%.

Finance: draft 13-week cash view by Friday.

Ford Motor Company (F) - Canvas Business Model: Customer Relationships

You're looking at how Ford Motor Company keeps customers engaged across its diverse portfolio, which is a complex mix of traditional dealership reliance and aggressive digital transformation. The relationship strategy clearly segments between commercial and retail customers, but the digital thread, FordPass, ties much of it together.

Dedicated Ford Pro account managers for commercial fleets.

Ford Pro's relationship with commercial customers is heavily data-driven, moving beyond just vehicle sales to focus on fleet productivity and uptime. This is supported by the Ford Pro Intelligence software platform. As of the third quarter of 2025, Ford Pro had about 815,000 active paid software subscriptions, marking a 30% increase year over year. This focus on software and services is a major revenue driver; in 2024, Ford Pro generated $9 billion in earnings on nearly $67 billion in revenue, achieving a 13.5% margin. The goal is to use data to create a different relationship with the customer, driving share of wallet through services.

Traditional dealer-based sales and service model.

The backbone of Ford Motor Company's customer service remains the dealer network, which is increasingly offering mobile and remote support options. Dealers provided over 503,822 Mobile Service experiences in the first quarter of 2025, a 14.5% increase from the prior year. By the third quarter of 2025, dealers had completed over 950,000 remote service experiences in that quarter alone. The U.S. Mobile Service fleet itself grew to more than 4,200 units, up 12% year-over-year as of Q3 2025. Overall, Ford delivered 1.8 million service experiences in the first half of 2025.

Digital engagement via FordPass and connected vehicle services.

Digital engagement is strong, with the FordPass app boasting 12 million monthly active users, representing an adoption rate of 91 percent among compatible vehicles. This app acts as a key digital bridge for owners, allowing remote functions and serving as the path for upselling connected services like BlueCruise. Customer usage of BlueCruise, the hands-free highway driving technology, exceeded 7 million cumulative hands-free highway hours by the end of the third quarter of 2025.

Loyalty programs and repeat purchasing of F-Series and other core models.

Loyalty is heavily reinforced by the success of core models, particularly the F-Series truck line. Through the first nine months of 2025, Ford Motor Company clocked 620,580 F-Series deliveries, an improvement of 12.7% year-to-date. The F-Series sold 207,732 units in the third quarter of 2025, up 4.7% from Q3 2024. While the F-Series drives loyalty, the Maverick pickup is attracting new customers; it recorded a third-quarter record with 34,848 sales, and nearly 60% of Maverick buyers are new to Ford.

The relationship strength across key segments is quantified below:

Direct-to-consumer model exploration for certain EV sales.

Ford Motor Company continues to explore digital transaction models, especially for its electric vehicle lineup, though specific D2C sales volume figures aren't publicly detailed in the same way as traditional sales. The digital platforms, including FordPass, are explicitly noted as channels where transactions for services like BlueCruise can happen. Furthermore, digital platforms allow customers to build and price vehicles and arrange delivery, meeting the preference of shoppers who value convenience and transparency.

Ford Motor Company (F) - Canvas Business Model: Channels

You're looking at how Ford Motor Company gets its products and services to the customer base as of late 2025. It's a mix of traditional brick-and-mortar, specialized sales forces, and digital delivery, which is key for their software-defined vehicle strategy.

The primary physical touchpoint remains the dealer network, though it's been actively streamlined. Ford Motor had only about 9,000 dealerships globally by the end of fiscal year 2024, a reduction of nearly 25% from 2014 levels, as the company focused on fewer, larger locations. The U.S. network consists of over 3,100 Ford and Lincoln dealerships combined. Specifically, there were 479 Lincoln dealerships in the United States as of March 12, 2025.

For commercial customers, the Ford Pro sales force is the dedicated channel. This focus is paying off in revenue and software adoption. Ford Pro generated $18.8 billion in revenue in the second quarter of 2025, marking a 10.6% year-over-year increase. Wholesale units for the division rose 14.4% year-over-year to 429,000 units in Q2 2025. The installed base of Ford Pro paid software subscriptions reached about 815,000 by the third quarter of 2025, which was up 30% year-over-year.

The digital and service channels are growing rapidly, especially for the commercial segment and vehicle maintenance. The Ford Pro Intelligence software platform had approximately 674,000 active subscriptions at the end of the first quarter of 2025. Also, the U.S. Mobile Service fleet expanded to more than 4,200 units, a 12% year-over-year growth. In the third quarter of 2025 alone, dealers completed over 950,000 remote service experiences.

Online configuration and ordering via Ford.com is an active channel, although not all models are fully available for direct digital ordering; for instance, some 2025 F-150s require contacting a dealer to order. The platform allows customers to sign in for easier vehicle and accessories shopping and order tracking.

Vehicle financing and leasing are channeled through Ford Credit, which continues to be a strong contributor to overall earnings. Ford Credit reported third-quarter Earnings Before Taxes (EBT) of $631 million, which was a 16% increase compared to the prior year. The lease share of retail sales increased to 18% in the third quarter of 2025, up from 10% in the second quarter. Total Net Receivables for Ford Credit increased by $3.5 billion year-over-year in Q3 2025, with Net Investment in Operating Leases growing by $3.8 billion year-over-year.

Software delivery is increasingly a direct-to-vehicle channel. Ford has delivered over 63 million Over-the-Air (OTA) updates in total, with 9.5 million delivered just in the first quarter of 2025. The company has a stated goal to have 33 million vehicles capable of receiving OTA technology by 2028.

Here's a quick look at some key channel metrics as of late 2025:

The utilization of these channels shows clear strategic direction:

• Global dealership count targeted for reduction to nearly 50% of 2014 levels by 2025.
• Ford Pro connected commercial vehicles in operation exceeded 5 million as of Q1 2025.
• Ford Credit lease share reached 18% of retail sales in Q3 2025.
• The company is actively pushing software updates, with 9.5 million delivered in Q1 2025.
• U.S. Mobile Service fleet grew 12% year-over-year to over 4,200 units.

Ford Motor Company (F) - Canvas Business Model: Customer Segments

You're mapping out Ford Motor Company's customer base as of late 2025, and it's clear the business is segmenting its approach to align with the three distinct operating units: Ford Pro, Ford Blue, and Ford Model e. This segmentation is critical because the financial performance across these groups varies wildly, so understanding who is buying what dictates capital allocation.

Commercial Fleets (Ford Pro) represent the most lucrative segment right now. This division blends vehicle sales, services, and software into a single ecosystem for commercial clients, and it's definitely the company's biggest growth engine. For the third quarter of 2025, Ford Pro delivered an EBIT of $2 billion on revenues of $17.4 billion, which is a 9.4% year-over-year rise in EBIT, with margins holding above 11%. Looking at the second quarter, the revenue was even higher at $18.8 billion, up 10.6% year-over-year, with an EBIT margin of 12.3%. This strength is underpinned by market dominance; Ford remains number one in commercial vehicles, with its Class 1-7 truck and van share rising to 43% in the U.S. through July 2025. The Transit van alone saw Q3 sales of 42,503 units, a 32.3% jump.

The stickiness of the Ford Pro segment comes from digital integration. Paid software subscriptions are a key high-margin recurring revenue stream. In the third quarter of 2025, these subscriptions hit 818,000, an 8% sequential increase. This follows the Q2 figure of more than 750,000 active subscriptions, which was already a more than 20% year-over-year growth. Software and physical services contributed 17% of Ford Pro's trailing 12-month EBIT as of Q2 2025. Honestly, this ecosystem approach is what keeps fleet customers locked in.

Traditional Consumers (Ford Blue) are the backbone for the internal combustion engine (ICE) and hybrid sales, and this division is a profitable powerhouse. Ford Blue was projected to earn between $3.5 billion and $4 billion in 2025. In the second quarter, it reported $661 million in EBIT, driven by profitable market share gains. The truck segment is the cornerstone here, with the F-Series continuing its dominance. Year-to-date through Q3 2025, F-Series sales reached 620,580 units, up 12.7% year-to-date, putting it on pace for its 49th straight year as America's best-selling truck. The smaller Maverick is also a huge draw for new customers; nearly 60% of its buyers are new to Ford. Maverick YTD sales hit 120,904 units, up 10.9%.

The hybrid offerings under Ford Blue are also seeing significant uptake, acting as a bridge for many buyers. Total electrified vehicles (hybrid, PHEV, BEV) represented 15.7% of Ford's Q3 2025 sales mix, with year-to-date electrified sales reaching 242,298 units, a 16.5% increase. The F-150 Hybrid posted 22,212 sales in Q3 alone.

Here's a quick look at the performance of key Ford Blue retail vehicles through the third quarter of 2025:

EV Early Adopters (Ford Model e) are a segment Ford is actively trying to make profitable, though it still incurs significant losses. In the first quarter of 2025, the Model e division reported an EBIT loss of $849 million, an improvement from the $1.3 billion loss in Q1 2024. Revenue for the division in Q1 2025 was $1.2 billion, a massive leap from just $0.1 billion a year prior, driven by sales growth. Q1 2025 EV sales totaled 31,000 units, a 213% increase over the 10,000 units sold in Q1 2024. By Q3 2025, pure electric vehicle sales hit a new quarterly record of 30,612 units, up 30.2%.

The iconic models are leading this charge. The Mustang Mach-E achieved its best-ever quarterly sales at 20,177 units in Q3 2025, up 50.7%, and the F-150 Lightning delivered a Q3 record of 10,005 pickups, up 39.7%. Still, the segment reported a Q2 2025 EBIT loss of $1.3 billion. Ford is focused on cost reduction, with new, lower-cost EVs expected to reach profitability within a year of showroom arrival.

The final group, Value-Focused Buyers, is driving a strategic pivot within Ford Model e. Facing slowing demand for large, high-cost EVs and competition from lower-cost players, Ford is shifting its roadmap. The company is developing a new, highly efficient EV platform designed to cut costs and support multiple vehicle styles for both retail and commercial customers. The first vehicle off this platform is expected to be a mid-size electric pickup launching in 2027, specifically designed to cater to customers seeking more utility and range for their money. Ford's stated goal is to offer a range of electrification options, including lower prices, to speed customer adoption.

This focus on affordability is a direct response to market dynamics, as today's EV buyers are more cost-conscious than the early adopters were. The company is realigning battery sourcing, including bringing some production to the U.S. to qualify for Inflation Reduction Act benefits and using lower-cost Lithium Iron Phosphate (LFP) batteries in future models.

Ford Motor Company (F) - Canvas Business Model: Cost Structure

You're looking at the major drains on Ford Motor Company's cash flow as they push through this massive transformation. The cost structure is heavily weighted toward future-proofing the business, meaning big upfront spending now for potential returns later. Honestly, it's a balancing act between funding the EV future and maintaining the profitable ICE (internal combustion engine) business, Ford Blue.

The capital allocation for expansion remains substantial. Ford Motor Company projected its high capital expenditures (CapEx) for fiscal year 2025 to be approximately $9 billion. This spending is crucial for the ongoing pivot, even as the company strategically shifts some resources away from certain pure EV programs toward the Ford Pro commercial segment.

A significant portion of that CapEx is tied up in the EV battery vertical integration efforts. Ford Motor Company is focused on securing a competitive battery cost structure, which involves major manufacturing investments. For instance, the BlueOval SK joint venture's Kentucky 1 plant is set to manufacture cells for the E-Transit and F-150 Lightning starting in mid-2025, aiming for significant cost improvements. Furthermore, the company is developing a new, low-cost EV platform, with a new $3 billion battery factory in Marshall, Michigan, planned to begin building lithium iron phosphate (LFP) cells in 2026 to achieve lower North American battery cell costs.

Trade policy creates a direct, measurable headwind to costs. For the full-year 2025 guidance, Ford anticipates a net tariff-related headwind of about $1 billion, which is an improvement from earlier estimates of $2 billion, reflecting recovery actions taken by the company. This impact comes from duties on imported vehicles and components, even with Ford's strong domestic manufacturing base.

Fixed costs are dominated by the global manufacturing footprint and the obligations to its unionized workforce. The new UAW labor agreement, finalized in late 2023, is a major long-term cost factor. This deal is estimated to cost Ford Motor Company roughly $8.8 billion through its duration, which expires in April 2028. The projection is that this agreement will add about $900 in labor costs per vehicle by 2028, which Ford is working to offset through productivity gains and other expense reductions.

Finally, the day-to-day running of the business-Marketing, Sales, and Administrative (MS&A) expenses-is also considerable. For the twelve months ending September 30, 2025, Ford Motor Company's SG&A expenses were reported at $21.824 billion. Looking at the most recent quarter, the Selling, General, and Administrative (SG&A) expense for the quarter ending September 30, 2025, was $2.74 billion.

Here's a quick look at some of these key cost drivers for 2025:

The company is actively trying to manage these fixed and variable costs through productivity improvements and strategic capital reallocation. You can see the pressure points clearly when you map out these large figures.

Ford Motor Company (F) - Canvas Business Model: Revenue Streams

You're looking at the core ways Ford Motor Company brings in cash as of late 2025, and honestly, it's a story of three distinct engines running at different speeds. The revenue streams are clearly segmented, reflecting the ongoing, complex transformation under the Ford+ plan.

The largest component remains vehicle sales, split across the Ford Blue and Ford Model e divisions. Ford Blue, handling the traditional Internal Combustion Engine (ICE) and Hybrid vehicles, continues to be the bedrock of immediate profitability. Ford Model e, the electric vehicle unit, is still driving significant revenue growth, though it operates at a substantial loss as it scales investment for future generations of EVs.

The high-margin commercial side, Ford Pro, is definitely the profit engine right now. This segment captures revenue not just from selling vans and trucks, but increasingly from the attached services. Ford Pro delivered an Q3 EBIT of $2.0 billion on $17.4 billion in revenue, achieving a healthy 11.4% margin in the third quarter. That durability is key. This segment's success is directly tied to recurring revenue streams.

Speaking of recurring revenue, subscription revenue from Ford Pro telematics is a growing piece of the pie. Ford reported that paid software subscriptions grew sequentially by 8% in Q3 2025, reaching over 818,000 paid subscribers. That's high-margin, sticky revenue built on top of their commercial vehicle sales.

Financial services revenue from Ford Credit also provides a steady contribution. For the third quarter of 2025, Ford Credit reported earnings before taxes (EBT) of $631 million, which was a 16% increase compared to the prior year. This stream supports vehicle sales by offering financing and leasing options directly to customers.

Here's a quick look at how the main operational segments stacked up financially in Q3 2025, which helps you see where the profit is actually landing:

Overall, the total company revenue hit a record $50.5 billion in Q3 2025. However, external shocks, like the Novelis fire, have tempered expectations for the full year. Consequently, the full-year 2025 adjusted EBIT guidance was revised downward to be between $6.0 billion and $6.5 billion. This guidance range reflects the absorption of significant headwinds, including an estimated $1.5 billion to $2.0 billion EBIT headwind in the fourth quarter alone from the supplier fire.

To summarize the key revenue drivers and their recent performance, you can see the mix:

• Vehicle sales revenue from Ford Blue (ICE/Hybrid) is stable and profitable.
• Ford Model e revenue grew 50% year-over-year to $1.8 billion in Q3 2025.
• Ford Pro commercial revenue reached $17.4 billion in Q3 2025.
• Recurring software revenue from telematics is scaling rapidly, hitting 818,000 paid subscribers.
• Ford Credit contributed $631 million in EBT in the third quarter.

Finance: draft 13-week cash view by Friday.