Ford Motor Company, a global leader in给孩子 Sachs, regularly updates its financial performance to reflect the state of its business. In a recent financial statement update, the automaker addressed two major areas of concern: high warranty expenses and sluggish cost-cutting efforts. The company disclosed that in the July-September quarter, $1 billion (€960,000) worth of accounting charges were incurred to write down assets for a cancelled three-row electric SUV. This totaled over €9 billion in write-offs, marking a significant dip in the automotive segment.
Ford’s electric vehicle (EV) business, which made up a substantial portion of the company’s revenue, reported a full-year adjusted pretax income for 2024 as ranging between $7 billion (€6.8 billion) and $8.5 billion (€8.2 billion). Half a billion units sold in the first half of the year and a smaller contribution in the second half, the EV business saw a much larger net loss compared to standaloneretaional losses. The full-year loss for Ford Electric equaled a net loss of $5.08 billion (€4.9 billion), which is a 16% decline from the third-quarters of 2023.
Ford aims to buoy its business by taking calculated risks, but this approach also reflects a deliberate decision to limit growth. In the Model electric segment, ongoing investments in future products and warehouse expansion, coupled with higher costs to develop newer battery plants and electric vehicles, have led to lasting losses. With this in mind, Ford estimated that the Model e segment of the car electric business could face a range of $5 billion to $5.5 billion of net cost improvements, even though the segment itself is expected to continue incurring losses of between $5 billion and $5.5 billion for the year.
Petrol and hybrid vehicles are another area Ford has at the helm. The company also reported that its kernel for critical oil and hybrid unit (Pro) may lose another $1.4 billion (€1.35 billion) in net cost reductions, highlighting the risks associated with these low-maintenance, low-price vehicles. Ford Blue, with its petrol and hybrid division instead, also highlighted the same range of losses. The company, which had $7.5 billion (€7.3 billion) to $8 billion (€8.9 billion) in pretax profits expects the Ford Pro division to underperform by about 10% over the next year.
In finalizing its first half of 2024, Ford’s earnings topped analysts’ Street predictions and set a new target. But investors were less than satisfied with the outlook, causing a spike in sell price movement. The Dearborn Michigan automaker closed down by 5.1% after-hours and then retr lle back to a 1.5% decline during regular trading scenes, showing that earnings valuing them remain uncertain. The靜 of the company was overtaken by the struggles of the automotive sector, which had been expected to continue growing butwgetingly from high inflation and supply chain disruptions.
