Ford doubles EV spending to $22B, records first full-year loss since 2008

DETROIT — Ford Motor Co. on Thursday said it was doubling the money it plans to spend on electrified autos, to $22 billion by way of 2025, because it reported a $2.8 billion fourth-quarter loss due to expensive product launches and vital one-time expenses.

For all of 2020, Ford recorded its first internet loss since the Great Recession — $1.3 billion — because the coronavirus pandemic disrupted manufacturing and gross sales.

Ford mentioned its adjusted earnings earlier than curiosity and taxes greater than tripled from the fourth quarter of 2019 to $1.7 billion. Revenue fell 9 p.c to $36 billion.

The automaker generated almost $1.1 billion earlier than curiosity and taxes in North America through the quarter, a 53 p.c improve, with a revenue margin of 4.9 p.c.

The fourth-quarter internet loss was attributable to variety of beforehand introduced particular merchandise expenses, together with $610 million for a Takata airbag recall, $2.5 billion as a part of its pullout from Brazil and $1.5 billion associated to remeasurement of its pension plans.

Ford in 2018 had dedicated to spending $11 billion by way of 2022 on electrified autos. It now plans to spend $29 billion by way of 2025 on electrical and autonomous autos, topping a $27 billion dedication by General Motors.

CFO John Lawler mentioned a “majority” of the $22 billion devoted to electrified autos could be spent on battery-electric fashions, though he declined to say what number of Ford deliberate to add to its lineup. He additionally declined to match GM’s acknowledged ambition of going all-electric by 2035, noting Ford was targeted on introducing upcoming fashions just like the F-150 EV and E-Transit.

Lawler mentioned the $7 billion dedication for autonomous autos would come with spending on Ford-owned Argo AI in addition to its deliberate 2022 launch of autonomous industrial companies.

Ford mentioned it expects the worldwide semiconductor scarcity to doubtlessly scale back its first-quarter international manufacturing by 10 p.c to 20 p.c. Lawler mentioned Ford would supply a extra detailed look on how the difficulty will have an effect on the company’s earnings when it experiences first-quarter leads to April.

The chip scarcity is impacting a number of automakers world wide. Lawler mentioned Ford would take a look at quite a few cures, together with doubtlessly shopping for chips itself as a substitute of by way of suppliers.

“We’re being very proactive,” Lawler mentioned. “We’re going to work the system to optimize what we can. We’re looking at every angle that we can so we can get as many chips in and minimize the impact on the business.”

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