Ford ended 2022 with a whimper, as the company fell short of Wall Street projections for earnings. The company had a miserable fourth quarter, with net income only coming in at $1.3 billion. To put that into perspective, it is $11 billion lower than Q4 2021.
Over the entire year, the company lost $2 billion, which is a major hit considering the company posted a profit of almost $18 billion last year.
Ford‘s CEO, Jim Farley, noted that the losses came down to execution and performance issues by the company. The automaker’s CFO, John Lawler, pointed towards those same execution issues and supply chain management issues as the root causes. He did confirm Ford is looking to cut additional costs in 2023 and did not rule out layoffs in Europe.
He noted:
Our cost structure is not competitive. Our quality is not where it needs to be. And we will take the action and be more aggressive about making sure that we’re making progress on both of those critical areas for us in 2023.
Also, some interesting news for investors, the company did confirm they will be reporting on each unit of the company in the coming financial year. So, we will see separate financial breakdowns of the ICE, EV, and Ford Pro business units.
You can read Ford’s full report below.
2.2.23-People-Plan-Products-Position-Ford-Well-for-‘Pivotal’-2023-Despite-Effect-of-Volume-Shortfall-on-Q4-Full-Year-2022-Results
