Ford Motor Co missed Wall Street’s profit expectations for the fourth quarter, missing its own full-year guidance by $1.1 billion. Ford’s fourth-quarter net income was $1.3 billion, $11 billion lower than a year earlier. For the full year, Ford posted a loss of $2 billion, nearly $20 billion short of its 2021 profit.
“We should have done better last year,” Ford CEO Jim Farley said in an earnings report. “We lost about $2 billion last year, and those profits were within our control. and performance to correct that.”
Ford’s chief financial officer (CFO) John Lawler said Thursday that the company’s disappointing earnings were largely due to execution and supply chain management issues. The company sold 100,000 less than expected, equating to a missed gain of about $1 billion, he said. He said that Ford will focus on improving the company’s operating conditions in the future, and he does not rule out the possibility of increasing layoffs, especially in Europe.
In addition, he also said that after introducing more incentives, the price of Ford’s vehicles this year will be basically the same as the previous year. Finally, he believes that Ford’s current cost control is not competitive, and many regions around the world will carry out further car manufacturing cost reduction work in the follow-up time.
Looking back at Ford’s sales in 2022, domestically, the joint venture brand Changan Ford will sell a total of about 250,000 vehicles in 2022, a year-on-year decrease of 17%. In the United States, Ford’s home base, its cumulative sales in 2022 will reach 1.85 million units, second only to General Motors and Toyota Motor, and its Raptor series pickups have absolute market dominance. Tiger and other products also have good market performance.
