Ford prepares For the economic downturn, at least according to the automaker Chief Financial Officer. company have recently Witnessed record profits With strong demand from vehicles such as the Maverick, Mustang Mach-E, Bronco and F-150 Lightning. But as CNBC News Reports, like most Americans, the company is not immune to the effects of inflation.
stronghold made money In 2021, he made nearly $18 billion in profits. Give a lot of it on the back Its stake in Rivianbut people still want what brand Sell. In January of this year alone, stronghold SoApproximately 155,000 vehicles. They’re selling it faster than they can make it, though take to me upload Prices to offset inflation.
While this has helped the company’s profit margins, not everything is immune. Speaking at a conference hosted by Deutsche Bank, John Ford Chief Financial Officer Lawler mentioned how inflation has affected the company, specifically the Mustang Mach-E. He added that thisAlthough the company price hike of Mach-E with the rest of its lineup to offset inflation, the double pressure of rising battery material costs and inflation devour Mach-E’earnings. While Lawler did not say how much the company is likely to lose at this time In every Mach-E you sell, it’s reported that EV costs It went up to $25,000.
In a sign that the gravy train can stop running at any time, Lawler She stated that Ford is taking steps to prepare for the economic downturn. The main sign of things to come? Late car payments. Lawler said Ford Credit, Ford’s auto financing arm, You’re starting to see more and more late payments. I think those 84 month loans are in default On some models it wasn’t a good idea after all. And while Lawler reassured the company that the company is in a better position for an economic downturn than before, if the economy deteriorates a bit, automakers and consumers will be hit hard.
Automakers have been pouring billions into the electric vehicle transition. Many could be in the same situation as Ford as inflation eats up profits as manufacturing costs soar. Car prices are higher than ever, and Consumers who take out longer and longer loan terms To fund it (and the brands merchants put on them), all of this has the potential to get really bad before it gets better.
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