Autoline Daily take in it:
Two days ago, the Financial Times reported that Ford was talking with BYD and Xiaomi to make EVs in the U.S. Ford and Xiaomi denied the reports, but now we’re hearing that Ford is talking with Geely to use at least one of its European assembly plants. And Ford could get access to Geely’s technology, like hands free driving, which would presumably be cheaper than Blue Cruise. Ford’s sales in Europe are down dramatically and it has plenty of open capacity. Geely could make cars at Ford’s Valencia assembly plant in Spain, which currently makes the Kuga, also known as the Escape in the North American market. Sales of the Kuga have dropped under 100,000 units a year, while the Valencia plant is tooled to make 400,000. A basic rule of thumb in the industry is that a plant has to operate at 80% capacity to break even, which is 320,000 units for Valencia. Whether it does a deal with Geely or not, Ford needs to figure out a way to boost the capacity utilization of its European plants.
That is my concern too. The Escape PHEV has had multiple problems with the battery packs. Ford is likely concerned about this also and that is probably why Ford Energy is going to be its own entity.
Happy Birthday @akirby!
Great to see Ford reporting higher profits along with record revenue. That’s a strong sign they’re executing well, especially given the broader market challenges. It suggests their product mix and cost controls are paying off.
The real test will be whether they can sustain this momentum with ongoing cost pressures and investments, but overall this looks like a solid result and a positive signal for the company going forward.