Ford does better than expected in the fourth quarter and is ambitious for 2024

(New York) The American car manufacturer Ford on Tuesday published results above expectations in the fourth quarter, despite a loss linked to exceptional items, and unveiled ambitious objectives for the current year.


Turnover reached $46 billion, up 4% year-on-year. The Dearborn (Michigan) group notably indicated that it had benefited from a favorable price effect, according to a press release.

In detail, Ford was supported by sales of its Pro division, dedicated to utility vehicles, which increased by 11%.

At the same time, the Blue division, which includes gasoline automobiles and hybrids, saw its turnover stagnate.

As for Ford Model e, its electric branch, it only experienced growth of 2%.

Weakened by “an extremely competitive pricing landscape” and weighed down by significant investments, the latter division recorded an operating loss ($1.57 billion) almost equivalent to its turnover (1.6).

While the electric vehicle market is expanding at a much slower pace than hoped for by manufacturers and the Democratic government of Joe Biden, favorable to the energy transition, Ford has reiterated its commitment to gaining momentum in this segment.

“Electric vehicles are going to be part of our landscape, customers are increasingly getting into them and their long-term potential is central to Ford,” said Chief Financial Officer John Lawler, quoted in the press release.

In mid-January, the manufacturer nevertheless announced a lowering of production forecasts for its F-150 Lightning electric pickup.

In the fourth quarter, Ford recorded a net loss of $526 million, mainly due to an exceptional accounting charge of $1.7 billion related to the reassessment of its financial obligations under employee retirement pensions.

Affected by its investments in electricity and the increase in wages following the signing of a new collective agreement in October, Ford intends to remain vigilant about its costs.

It is planning savings measures this year which should amount to two billion dollars, said the group’s number two, Kumar Galhotra.

Ford is targeting operating profit of between $10 billion and $12 billion in 2024, more than analysts projected.

In electronic trading after the close of the New York Stock Exchange, Ford shares gained more than 6%.


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