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Ford bends but does not break!

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Ford

The American automaker Ford is reporting a heavy quarterly loss while promising a clear rebound within two years.

Ford has published mixed financial results for the end of the year. The company recorded a net loss of $11.1 billion in the fourth quarter, primarily due to heavy write-downs related to its electric vehicle programs. These accounting entries correspond to abandoned or downwardly re-evaluated projects. They do not directly involve an immediate outflow of cash but weigh heavily on the accounts.

At the same time, some indicators are more positive. Quarterly revenue reached $45.9 billion, a level above analysts’ expectations. However, adjusted earnings per share came in at only 13 cents, below market forecasts. The operating profit for the quarter also fell by about 50%, dropping to $1 billion.

Ford sees better days ahead

Several factors explain this situation. Ford has faced the impact of higher-than-expected tariffs on certain imported parts, particularly aluminum. A major fire at an aluminum supplier also disrupted production and increased costs. Additionally, the end of the American tax credit for electric vehicle buyers has dramatically slowed demand.

Despite these challenges, management maintains an optimistic outlook. Ford forecasts an operating profit of between $8 billion and $10 billion by 2026. The company is counting on a significant reduction in costs and new, more affordable electric models developed in California on a platform costing less than 30,000 euros. Ford also aims to accelerate its development cycles to compete with Chinese manufacturers, known for being faster.

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The group is also continuing to forge industrial partnerships in Europe and Asia to share investments. The goal is clear: to regain profitability in the electric market while maintaining the strength of its traditional and hybrid models.

ALSO READ: Ford cuts the price of spare parts by 25%

This page is translated from the original post "Ford plie mais ne rompt pas !" in French.

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