Ford Reports 2% Decline in Sales for 2022 (2024)

FAQs

Did Ford lose $2 billion in 2022? ›

Profit margins for hybrid vehicles are better, too, Farley said. Ford's fourth-quarter net income was a loss of $526 million, compared with $1.3 billion in 2022, and full-year net income was $4.3 billion compared with a loss of $2 billion in 2022, the company said.

Costs outweigh earnings in times of crisis

In 2020, Ford was unable to avoid falling in the red. Its 2021 recovery did not last in 2022, as external market challenges contributed to the third highest losses recorded by the company since 2007.

Ford Motor said it lost $526 million in the final three months of 2023, mainly as a result of special charges related to its employee pension programs and the reorganization of some of its overseas operations.

The automaker's total vehicle sales declined 5.3% from October 2022 to 149,938, marking the brand's first year-over-year decline of 2023.

The profit was up from a $2 billion net loss in 2022 — results that had been driven by a mixture of execution issues, supply-chain woes and costs associated with lost investments. Wall Street analysts, according to Yahoo Finance, on average were projecting the Dearborn automaker to record $165.21 billion in revenue.

Ford released its fourth-quarter financial results Tuesday evening. While the carmaker expects to make over $10 billion in profit this year, it also expects to lose about $5 billion on its push to make and sell more electric vehicles.

The Probability of Bankruptcy of Ford Motor Co (F) is 4.4% . This number represents the probability that Ford will face financial distress in the next 24 months given its current fundamentals and market conditions.

Ford has struggled with quality issues for a while now, but despite its efforts, the automaker has issued 54 recalls through December 18. While many of the automakers with multiple recalls did so because of electrical system issues, Ford's most-recalled component category was powertrains.

One of the most common issues in Ford vehicles is related to transmission. Many Ford owners have reported transmission problems such as twitching or slipping when shifting gears, delayed or rough shifting, and complete transmission failure.

Total debt on the balance sheet as of December 2023 : $151.10 B. According to Ford's latest financial reports the company's total debt is $151.10 B. A company's total debt is the sum of all current and non-current debts.

Who does Ford owe money to? ›

In September 2009, Ford entered into an agreement with the Department of Energy and borrowed $5.9 billion as part of a loan program created to finance automotive projects designed to help vehicles built in the U.S. meet higher mileage requirements and lessen U.S. dependence on foreign oil.

The Ford Motor Company reported total debt around 149.2 billion U.S. dollars in 2023. Total debt comprises automotive debt, credit debt, and other debt.

Evolving Consumer Preferences. One of the primary drivers behind Ford's decision to reduce car production is the evolving consumer preferences in the automotive market. Over the past decade, there has been a noticeable shift in consumer demand toward larger vehicles such as SUVs and trucks.

For full-year 2023, revenue was up 11% to $176 billion. Net income improved year-over-year to $4.3 billion; adjusted EBIT of $10.4 billion was essentially flat year-over-year and at the high end of guidance that Ford provided following ratification of its new contracts with the UAW in the U.S. and Unifor in Canada.

Ford shares fell after the automaker reinstated its 2023 guidance, which it had previously withdrawn during the United Auto Workers (UAW) strike. The company reached a deal with the union that included significant wage increases, which Ford said would increase costs by $8.8 billion over the lifetime of the contract.

The company's financial performance was hurt by its stake in Rivian, an electric truck company, and an autonomous car business. Ford Motor said on Thursday that it lost $2.2 billion in 2022 as it wrote down the value of two big investments and struggled with high costs and supply chain problems.

So far this year, Ford has lost $3.1 billion on its EV spending and has said it's going to lose a total of $4 billion for the year. The Kentucky plant, a “mega campus” that builds lithium ion batteries for electric cars, will be put on hold. But its Blue Oval City project in Tennessee was still moving forward.

Ford Motor annual gross profit for 2023 was $25.641B, a 8.37% increase from 2022. Ford Motor annual gross profit for 2022 was $23.66B, a 9.08% increase from 2021.

The bad news. Here's the kicker about Ford's record EV sales: The company is still burning cash on each EV that rolls off its production line. In fact, Ford previously estimated its EV business unit, Model e, would lose roughly $4.5 billion in 2023.