Mexican Media Brands
Ford Predicts Profit Rebound in 2018
Ford Motor Co. expects a rebound in net profits in 2018 after declines in 2016-2017 caused by heavy investment costs in such areas as fully self-driving vehicles.
#economics
Share
Ford Motor Co. expects a rebound in net profits in 2018 after declines in 2016-2017 caused by heavy investment costs in such areas as fully self-driving vehicles.
Last week the company cautioned that its pretax profit this year will fall 6% to $10.2 billion, largely because of a massive recall to replace faulty door latches. But Ford says adjusted pretax profits on core operations will improve each year from 2016 through 2018, thanks to a plan to cut costs on core operations by $3 billion annually.
The guidance comes as Ford conducts an all-day meeting with analysts and investors to explain how it with both fortify its core carmaking business and expand into an emerging array of personal mobility services that include ride-sharing and crowd-sourced shuttles.
The company targets operating margins of at least 8% on its traditional operations and at least 20% on emerging businesses.
RELATED CONTENT
-
Tariffs on Autos: “No One Wins”
While talk of tariffs may make the president sound tough and which gives the talking heads on cable something to talk about, the impact of the potential 25 percent tariffs on vehicles imported to the U.S. could have some fairly significant consequences.
-
VW Warns of Higher Costs to Develop EVs
CEO Herbert Diess says the €20 billion ($23 billion) Volkswagen AG has budgeted to electrify its entire vehicle lineup won’t be enough to meet that goal.
-
Inside Ford
On this edition of “Autoline After Hours” Joann Muller, Detroit bureau chief for Forbes, provides insights into what she’s learned about Ford, insights that are amplified on the show by our other panelists, Stephanie Brinley, principal analyst at IHS Markit who specializes in the auto industry, and Todd Lassa, Detroit Bureau Chief for Automobile.