U.S. automaker Ford executives explained how far the company is falling behind rivals on costs, citing spending on raw materials, warranty repairs and other structural items, the Wall Street Journal reported. Still far ahead of the competition.
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Ford needs to be aggressive and permanently root out organizational inefficiencies because the company has problems that resurface soon after they are fixed, Chief Executive Jim Farley told an analyst conference on Wednesday.
“As CEO, it’s my job to make sure that these issues don’t recur after I’m gone,” Farley told analysts at a Wolfe Research LLC event.
The data shows that Ford Motor’s net income in the fourth quarter of 2022 will reach US$1.3 billion (currently about 8.905 billion RMB), and its annual net loss will be US$2 billion (currently about 13.7 billion RMB). 2.6 billion US dollars (currently about 17.81 billion RMB) and 10.4 billion US dollars (currently about 71.24 billion RMB), which are lower than the estimated level. The main reasons are rising costs caused by supply chain and production instability and production not meeting expectations.
Ford announced that one in nine European employees will be cut after the company aggressively implements electrification plans. Ford has previously warned that its $50 billion (currently about 342.5 billion RMB) electrification plan is likely to come at the expense of jobs, especially outside its home market of North America. That’s not only because fewer employees are needed to make electric parts compared to gasoline-powered parts, but also because Ford plans to “slim down” its model lineup as it moves to 100 percent electric vehicle production in Europe and eventually North America.
