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Full year Profits Plunge $3.6B, Slower Sales/Pension


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1 hour ago, HotRunrGuy said:

Based on multi-year results like this, why even bother selling outside of NA?   Just to increase wheel count?

 

https://www.freep.com/story/money/cars/ford/2020/02/04/ford-profit-sharing-2020-checks-bonus/4644019002/

 

HRG

 

F outside of NA.JPG

Ford's products in Europe and China don't work, the ROW markets don't work either because they use Ford Europe products

So it's all fruit from the poisoned tree, the only exception s are Ranger and Transit commercial vehicles, all the rest is just

Shit or over priced or both. You can't sell three cylinder dogshit up against quality competitors.

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1 minute ago, jpd80 said:

Ford's products in Europe and China don't work, the ROW markets don't work either because they use Ford Europe products

So it's all fruit from the poisoned tree, the only exception s are Ranger and Transit commercial vehicles, all the rest is just

Shit or over priced or both. You can't sell three cylinder dogshit up against quality competitors.

 

 

Maybe you need to get better information before to say that.

In Europe some products are selling well. The Fiesta is the best selling car in UK. The Fiesta, the Focus , the Ranger pick up and the commercial vehicles are good products that sell in good numbers in Europe.The problem with Ford of Europe is that the people movers (S-Max, Galaxy, C-Max) was arround for longer than necessary. All automakers changed their people movers (vans) for crossovers or SUVs, but Ford. Ford is starting to do it with the new Puma, a Fiesta based crossover that will take the place of the B-Max and C-Max. Then, will come the Baby Bronco, that will add a new crossover to the Ford line up. The Edge failed in Spain. The Explorer will be here in some months, but in an hybrid version. The new Kuga (Escape) just debuted some weeks ago. Ford of Europe will be in better shape this year and , for sure, will generate more profits.

The 3-cyl engine of Ford is the basic powerplant for almost the entire line of Europe, and is a very good engine, with many "engine of the year" awards, so, think again before to say things like that.

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27 minutes ago, falconlover 1 said:

 

 

Maybe you need to get better information before to say that.

In Europe some products are selling well. The Fiesta is the best selling car in UK. The Fiesta, the Focus , the Ranger pick up and the commercial vehicles are good products that sell in good numbers in Europe.The problem with Ford of Europe is that the people movers (S-Max, Galaxy, C-Max) was arround for longer than necessary. All automakers changed their people movers (vans) for crossovers or SUVs, but Ford. Ford is starting to do it with the new Puma, a Fiesta based crossover that will take the place of the B-Max and C-Max. Then, will come the Baby Bronco, that will add a new crossover to the Ford line up. The Edge failed in Spain. The Explorer will be here in some months, but in an hybrid version. The new Kuga (Escape) just debuted some weeks ago. Ford of Europe will be in better shape this year and , for sure, will generate more profits.

The 3-cyl engine of Ford is the basic powerplant for almost the entire line of Europe, and is a very good engine, with many "engine of the year" awards, so, think again before to say things like that.

Fiesta and Focus make no money, that is why Europe is barely break even,

Ford needs to get going with more utility sales but don't expect any  massive

turnaround, this year is about getting new products in showroom and attracting

buyers, that all takes time. Every year Ford Europe has more than one new major product launch, the up front costs to Ford is big and pulls down profit big time

Edited by jpd80
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10 minutes ago, falconlover 1 said:

 

I agree with you, it didnt. But it generated  losses, when Ford expected it will generate some profits. And you know it.

That was mostly confined to Q3, Q4 was much better for Explorer sales

The slow ramp up in Q3 cost Ford about 30,000 sales but only 9,000 in Q4 (higher price/ less incentives)

Edited by jpd80
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13 hours ago, mustang84isu said:

IMO, it's time for Hackett to go.  He has been a disaster. 

 

A lot of people (investors, analysts, customers, employees) are upset that Hackett's work to get Ford fit again has been very slow to show results. They should be upset. But Ford was an even bigger disaster before Hackett became CEO in 2017. No human being could fix an organization as unhealthy as Ford in only 3 years. 

 

Let Hackett keep executing the fitness program he started. He's the only one who can get it done. And he's the right person for the job of Ford CEO, now and in the next few years. Trying to bring in a new CEO at this point will make things worse.

 

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Ford Stock is down because of this:   "Excluding one-time items, Ford made 12 cents per share for the quarter, falling short of Wall Street's expectations. Analysts polled by FactSet predicted 17 cents per share."     Plus the outlook for the coming year offered by Hackett that could be charachterized as negative.   Hackett said "I don't think this company can keep straddling the old and new worlds forever ... This company has to change,"     https://www.autoblog.com/2020/02/04/ford-2019-earnings/#slide-1278432    

 

The 12 cents actual vs. 17 cents predicted does NOT include the pension charges because it excludes one time charges which is how the pension charge was taken.  The 5 cent miss in the  4th quarter is the surprise driving the share price drop today.  I am not sure what it is attributable to -  Are Escape sales hurting us and Explorer still needing to ramp up?   In the article, Hackett did specifically cite the "flubbed" Ford Explorer launch and warranty costs.  

 

True the full year results and pension and warranty charges (Focus/Fiesta Transmissions) set up this dismal headline of full year profits falling from $3.68 Billion to $47 million which I am sure didn't help shares today.        Though not totally surprising since the results of the first 3 quarters are already out there. 

 

 

 

Edited by Fordowner
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30 minutes ago, rperez817 said:

Let Hackett keep executing the fitness program he started. He's the only one who can get it done. And he's the right person for the job of Ford CEO, now and in the next few years. Trying to bring in a new CEO at this point will make things worse.

 

We'll see what the Board of Directors does.  Very interesting piece on today's Autoline Daily.  Criticism of Joe Hinrichs (the botched Explorer launch.....poor execution) and speculation that Hackett will "retire" at age 65.  Ford policy is for Ford executives to retire when they turn 65, unless asked to stay on.  Edit:  Hackett turns 65 in April.

 

Go to the 7:38 mark:

 

http://www.autoline.tv/journal/?p=65935

 

 

Edited by mackinaw
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3 hours ago, mackinaw said:

 

We'll see what the Board of Directors does.  Very interesting piece on today's Autoline Daily.  Criticism of Joe Hinrichs (the botched Explorer launch.....poor execution) and speculation that Hackett will "retire" at age 65.  Ford policy is for Ford executives to retire when they turn 65, unless asked to stay on.  Edit:  Hackett turns 65 in April.

 

Go to the 7:38 mark:

 

http://www.autoline.tv/journal/?p=65935

 

 

I hope they replace him with Galhotra.

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9 hours ago, coupe3w said:

How much longer do they talk about quality? That is all they do is talk.


When have they Said anything about improving quality the last decade?  I haven’t heard it.  And overall quality isn’t bad according to jd power surveys -  just a few specific problems that shouldn’t be happening.

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23 minutes ago, akirby said:


When have they Said anything about improving quality the last decade?  I haven’t heard it.  And overall quality isn’t bad according to jd power surveys -  just a few specific problems that shouldn’t be happening.

 

You're kidding right?

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I see a big problem in the operational area of Ford. The Chicago plant must be scrutinized. Why did the Explorers and Aviators assembled there go out with serious defects, to the point of having to send them to another plant to fix them? So serious were the problems that could not be solved there? Is there any degree of sabotage by workers? Who supervised this plant?  Why they didn't realize what was happening, or, if they realized, why didn't they act? Hackett knew that the company's flagship product (apart from the F-series truck), the one that should leave the most juicy profits and maintain the market share, was being built that way, damaging the image of the product and the brand? There are many things that I do not understand, and I am sure, that in the future we will know what happened and it will be seen in its true magnitude as to damaged Ford this failed launch. Even Hackett points it out as the cause of the financial results! This will be the size of the debacle!  And this in only a part of the "Explorer debacle". The poor and horrible interior design, with bad quality materials, the use of a platform dedicated only for this product (in a costly decision), the wrong price policy (when we see the bad quality materials of the interior...) add some aspects to this problem. Is evident that the Explorer interior needs an urgent redesign (more money invested...) to keep a decent sales numbers... and the price must go down (less money for Ford...), because the competition is hard, offering better products, with better quality at lower price.

 

2019 was a horrible year. I hope Ford learn from the mistakes, and the launch of the Mach E, Bronco , new F series and Baby Bronco will be better than the Explorer launch. Ford cant make more mistakes.

Edited by falconlover 1
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53 minutes ago, falconlover 1 said:

I see a big problem in the operational area of Ford. The Chicago plant must be scrutinized. Why did the Explorers and Aviators assembled there go out with serious defects, to the point of having to send them to another plant to fix them? So serious were the problems that could not be solved there? Is there any degree of sabotage by workers? Who supervised this plant?  Why they didn't realize what was happening, or, if they realized, why didn't they act? Hackett knew that the company's flagship product (apart from the F-series truck), the one that should leave the most juicy profits and maintain the market share, was being built that way, damaging the image of the product and the brand? There are many things that I do not understand, and I am sure, that in the future we will know what happened and it will be seen in its true magnitude as to damaged Ford this failed launch. Even Hackett points it out as the cause of the financial results! This will be the size of the debacle!  And this in only a part of the "Explorer debacle". The poor and horrible interior design, with bad quality materials, the use of a platform dedicated only for this product (in a costly decision), the wrong price policy (when we see the bad quality materials of the interior...) add some aspects to this problem. Is evident that the Explorer interior needs an urgent redesign (more money invested...) to keep a decent sales numbers... and the price must go down (less money for Ford...), because the competition is hard, offering better products, with better quality at lower price.

 

2019 was a horrible year. I hope Ford learn from the mistakes, and the launch of the Mach E, Bronco , new F series and Baby Bronco will be better than the Explorer launch. Ford cant make more mistakes.

Ford will keep making mistakes, the reason Explorer defects happened is exactly because CAP ramp up was way too fast for an all new product,

They hit problems but because of plant speed and supply delivery lock in, they couldn't alter, slow down. All supply contracts are long lead with

Penalties for altering or change right after start of delivery. This is all on Joe Hinrichs, the VP that former CEO, Mark Fields tried to fire over Focus Powershift.

Edited by jpd80
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7 hours ago, coupe3w said:

 

You're kidding right?

I don't think akirby has read or listen to Mulally. Hard to miss the words "improve quality" spoken by Mulally over his tenure. As an example in this autonews article 6 weeks into Mulally tenure  mentions "quality" multiple times . 1st one is the first paragraph "Six weeks into his full-time stint as Ford Motor Co. CEO, Alan Mulally has already tweaked the automaker's product plan with a focus on improving fuel-efficiency, reliability and quality. https://www.autonews.com/article/20061110/SUB/61110080/ford-ceo-to-employees-new-product-top-priority

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2 hours ago, MKII said:

I don't think akirby has read or listen to Mulally. Hard to miss the words "improve quality" spoken by Mulally over his tenure. As an example in this autonews article 6 weeks into Mulally tenure  mentions "quality" multiple times . 1st one is the first paragraph "Six weeks into his full-time stint as Ford Motor Co. CEO, Alan Mulally has already tweaked the automaker's product plan with a focus on improving fuel-efficiency, reliability and quality. https://www.autonews.com/article/20061110/SUB/61110080/ford-ceo-to-employees-new-product-top-priority

Pretty sure that Jim Hackett hasn't mentioned quality once in any of his public communications,

he's cut the living crap out of ice products to spend on future BEVs, AVs and connectivity.

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