Ford executives explained the reasons for the business adjustment, saying the cost was much higher than that of competitors
CTOnews.com, February 16 (Xinhua) according to the Wall Street Journal, senior executives of the US automaker Ford Motor have explained the extent to which the company lags behind its competitors in terms of costs, saying that it still spends far more than its competitors on raw materials, warranty repairs and other structural items.
▲ source: Pexels on Wednesday local time, Ford CEO Jim Farley said at a meeting of analysts that Ford needs to actively and permanently eradicate organizational inefficiency because the company has a situation that will happen soon after the problem is resolved.
"my job as chief executive is to make sure that these problems don't happen again after I leave office," Farley told analysts at Wolfe Research LLC's event.
According to the data, Ford's net income in the fourth quarter of 2022 reached $1.3 billion (currently about 8.905 billion yuan), and its full-year net loss was $2 billion (currently about 13.7 billion yuan). Adjusted earnings before interest and tax were $2.6 billion (currently about 17.81 billion yuan) and $10.4 billion (currently about 712.4 billion yuan), respectively, lower than expected Rising costs and production falling short of expectations caused by supply chain and production instability are the main reasons.
Ford announced that 1/9 of its European employees would be laid off after the company actively implemented its electrification program, CTOnews.com reported yesterday. Ford had previously warned that its $50 billion electrification plan, currently about 342.5 billion yuan, was likely to come at the expense of jobs, especially outside its home market, North America. This is not only because of the reduced number of employees needed to make electric parts compared to fuel car parts, but also because Ford plans to "downsize" its model production line when it achieves 100 per cent production of electric cars in Europe and eventually in North America.
