itstargetnews
Valvoline CEO Lori Flees discusses the used car boom, declining interest in electric vehicles and more on “The Claman Countdown.”
Ford on Tuesday posted its biggest quarterly loss since 2008 amid losses at the automaker’s electric vehicle (EV) division, as well as the impact of tariffs and a fire that hit an aluminum supplier.
The Detroit automaker reported a net loss of $11.1 billion in the fourth quarter after previously disclosing large writedowns in its electric vehicle programs, which the company is refocusing in response to lower-than-expected consumer demand and changes in federal subsidies.
“I think the customer has spoken,” Ford CEO Jim Farley said on the company’s earnings call. “That’s the point.”
The company lost $4.8 billion on electric vehicles last year and projects losses of between $4 billion and $4.5 billion by 2026, adding that the division will continue to lose money for at least the next two years. Ford CFO Sherry House said during the earnings call that the automaker aims to break even in its electric vehicle unit by 2029.
Ford also announced greater financial success than previously reported fee costsas the company lost an additional $900 million after the Trump administration said in December that a tariff relief program would only be retroactive to November, instead of returning to May as initially expected.
FORD CUTS F-150 LIGHTNING PRODUCTION, TAKES $19.5M CHARGE IN STRATEGIC SHIFTING
Ford became famous for its revolutionary assembly line, introduced with the Model T in 1908. (Jeff Kowalsky/Bloomberg via Getty Images)
The automaker’s tariff bill last year was about $2 billion, and Ford indicated it expects tariff costs to be about the same level this year.
Ford was more dependent on imported aluminum due to a pair of fires that affected one aluminum plant near Oswego, New York, which is not expected to be fully operational again until sometime between May and September.
Despite those headwinds, Ford’s fourth-quarter revenue of $45.9 billion beat analysts’ expectations. The company narrowly missed its revised guidance of $7 billion as it reported earnings before interest and taxes of $6.8 billion for the year.
REGULATORS EXTEND PROBE TO NEARLY 1.3M FORD F-150 PICKUP TRUCKS FOR TRANSMISSION PROBLEMS
| Ticker | security | last | change | % change |
|---|---|---|---|---|
| F | FORD MOTOR CO. | 13.63 | +0.04 |
+0.33% |
Late last year, Farley announced that the company was scaling back production of the electric F-150 Lightning and would refocus its investment on hybrid vehicles and affordable electric vehiclesresulting in a $19.5 billion charge to its electric assets and product roadmap.
He said the move would allow the company to refocus investments in higher-margin areas such as now American made trucksvans and hybrids across its line, as well as more affordable electric vehicles.
FORD CEO LIKES TRUMP’S FUEL STANDARDS A ‘VICTO’ FOR REASONABLENESS AND COMMON SENSE
Ford CEO Jim Farley previously announced the EV sales and strategic pivot. (Emily Elconin/Bloomberg via Getty Images)
The company plans a $30,000 electric rig and has indicated it will begin rolling out an electric pickup on that rig next year. Ford also plans to seek specific partnerships in certain markets and invest in hybrid technologies.
“I think this is the right allocation of capital. It’s a combination of partnerships where it makes sense, efficient investments in partial electrification where we have revenue power and really hitting the EV market at the core,” Farley told analysts on a call Tuesday.
GET THE FOX BUSINESS ANYWHERE CLICK HERE
Reuters contributed to this report.
