DETROIT — Ford Motor Co on Thursday greater than doubled the sum of money it plans to take a position on electrical and autonomous automobiles, to $29 billion, even because it posted a fourth-quarter internet lack of $2.8 billion.
The No. 2 U.S. automaker additionally mentioned the worldwide semiconductor chip scarcity may result in a ten% to twenty% loss in first-quarter manufacturing, leading to a possible hit to working earnings of $1 billion to $2.5 billion. However its shares gained 1.5% in after-hours buying and selling because the fourth-quarter working outcomes and 2021 revenue forecast have been above Wall Road’s expectations.
“If EVs proceed to shortly acquire favor, particularly with business clients, we wish to be clear that we’ll not cede floor to anybody,” Chief Monetary Officer John Lawler informed reporters on a convention name.
Ford mentioned it was “doubling down” on linked electrical automobiles and mentioned it’ll make investments $22 billion in electrification by means of 2025, almost twice what it had beforehand dedicated to EVs. Ford additionally mentioned it will make investments $7 billion in self-driving, or autonomous, know-how improvement over 10 years by means of 2025 – $5 billion of that from 2021 ahead.
“We’re accelerating all our plans,” Chief Govt Jim Farley mentioned, together with growing battery capability and including extra electrical automobiles in its future portfolio.
He mentioned on a convention name with analysts that the $22 billion funding doesn’t embrace potential funding in battery manufacturing, whether or not by means of at Ford itself or by way of a three way partnership. He added that Ford may have extra bulletins quickly round its EV partnerships.
Farley informed Reuters final fall Ford was contemplating making its personal battery cells as gross sales volumes of electrical automobiles rise globally.
Ford beforehand dedicated to take a position $11.5 billion in electrification, together with gasoline-electric hybrid automobiles, by means of 2022. That included the launch of the Mustang Mach-E EV crossover, and electrical variations of the F-150 pickup and Transit van.
A Ford spokesman mentioned the $22 billion contains hybrid automobiles, however the dedication is “overwhelmingly” on EVs.
U.S. rival Basic Motors Co has mentioned it’ll spend $27 billion by 2023 on electrical and autonomous automobiles, a complete that doesn’t embrace hybrids. It mentioned it plans to supply 30 EVs globally by 2025 and is concentrating on topping annual gross sales of 1 million EVs in the USA and China by 2025.
Requested whether or not Ford would match GM’s announcement that it aspires to cease promoting gasoline-powered gentle automobiles by 2035, Lawler informed reporters Ford is targeted on promoting high-volume EVs now, a doable reference to GM’s preliminary EV product launches being lower-volume, greater priced fashions.
For 2020, Ford reported a internet lack of $1.3 billion. It had beforehand mentioned it anticipated a full-year revenue of between $600 million and $1.1 billion.
Ford had a loss within the fourth quarter of $2.8 billion, or 70 cents a share, in contrast with a lack of $1.7 billion, or 42 cents a share, a yr earlier. The quarter included a number of beforehand disclosed fees associated to a recall, remeasurement of pensions and the closure of the corporate’s Brazilian manufacturing operations.
Excluding the costs, Ford’s working revenue was 34 cents a share, simply topping the 7-cent loss analysts polled by Refinitiv had anticipated.
The Dearborn, Michigan-based firm projected working earnings would climb to $8 billion to $9 billion in 2021, in contrast with $2.8 billion final yr. Credit score Suisse analyst Dan Levy mentioned in a analysis notice the forecast was above Wall Road consensus expectations for $6.9 billion.
The forecast features a $900 million non-cash acquire on Rivian, the electrical car startup by which Ford has invested, however doesn’t embrace the impact of the continued world semiconductor scarcity. Farley mentioned the Rivian funding was strategic regardless of Ford beforehand shelving a car based mostly on a Rivian platform.
In COVID-19 pandemic-ravaged 2020, Ford’s whole income fell to $127 billion, from $156 billion in 2019.
Ford ended the quarter with almost $31 billion in money and $47 billion of liquidity, in contrast with virtually $30 billion and greater than $45 billion respectively within the prior quarter.
Its working margin within the fourth quarter was 4.8%, in contrast with a full-year goal of 8%.
(Reporting by Ben Klayman and Paul Lienert in Detroit; Enhancing by Dan Grebler)
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