Ford NZ hit by $25m tax bill
Ford New Zealand suffered a $4.7m loss in the year to the end of 2025 after paying $25.1m in tax following the resolution of a dispute between Inland Revenue and the US Internal Revenue Service over the company’s income.
The firm’s annual report says the respective authorities have reached a mutual agreement on proposed transfer pricing adjustments related to the 2017-2021 income tax years.
Ford NZ adds it has reflected the outcome of the agreement, which centres on how much the company pays its multinational parent for the vehicles it sells, in financial statements for 2022 to 2025 “under an advance pricing arrangement”.
The conclusion of the dispute meant Ford NZ’s total tax bill last year included $18.9m in previously unprovisioned tax.
By comparison, the company paid $2.8m in income tax in 2024 and made an $8.5m profit.
Despite last year’s extra expenses, Ford NZ still had cause to celebrate after its annual profit before tax increased by 81.4 per cent and climbed from $11.3m to $20.5m.
Revenue rose by 4.6 per cent over the same timeframe from $915.4m to $957.6m. This included $887.5m in vehicle sales, up from $854.6m in 2024, and $70.2m in parts sales, which rose from $60.7m.
The report released on June 9 also shows warranty expenses more than doubled year-on-year and totalled $72m, compared with $33.7m
Annaliese Atina, managing director, says the results came as the blue oval “continued to demonstrate market-leading performance across key segments”.
“The Ford Ranger maintained its position as New Zealand’s top-selling vehicle in the mid-size pick-up segment for the 11th consecutive year, a historic milestone in the local automotive industry,” she notes.
“In the light commercial sector, the combined strength of the Ranger and Transit secured Ford’s leadership for the seventh consecutive year.
“Additionally, the Ford Everest and Mustang maintained leadership in their respective segments, with both models delivering significant year-on-year growth and dominant market shares.”
Atina adds Ford NZ’s aftersales section also delivered a “standout performance” in 2025, with substantial growth in parts and service retail revenue.
That growth was supported by the migration of its secondary parts warehouse to increase overall capacity and resolve supply constraints, which ensures critical requirements for trade and collision customers are fully met.
She also notes the company is committed to strengthening its commercial and performance-vehicle leadership in 2026 and will “continue to focus on enhancing the end-to-end customer ecosystem and overall customer experience journey”.
