Ford Lost Money in the Third Quarter as Costs Surged

John Lawler, Ford’s chief financial officer, said on a conference call on Wednesday that the company was shifting its focus away from fully autonomous vehicles and toward advanced driver-assistance systems that allow drivers to take their hands off the steering wheel while still keeping their eyes on the road.

“It’s clear that profitable L4 systems are a long way away,” he said, referring to technology that allows drivers to rely on the car to drive itself in certain areas or under ideal weather conditions.

Last month Ford signaled that costs were rising fast in the third quarter, warning that spending on parts and materials would be $1 billion higher than expected. At the time, it said adjusted earnings before interest and taxes would be between $1.4 billion to $1.7 billion in the three-month period. A year ago it had adjusted earnings of $3 billion.

Like other carmakers, Ford has struggled to adjust to disruptions caused by the coronavirus pandemic, including a global shortage of computer chips. The company’s production has bounced up and down from month to month as parts have become easier or harder to come by.

Ford said it expected full-year adjusted earnings before interest and taxes of $11.5 billion. It had previously expected adjusted earnings of $11 billion to $12.5 billion.

Article source: https://www.nytimes.com/2022/10/26/business/ford-third-quarter-earnings.html