Ford disappointed by Q4 performance, but hopeful for the 2023 market

Ford has published its fourth quarter performance numbers, and, although the results are disappointing, the company’s leadership remains positive over the 2023 market.

The brand’s Q4 revenue hit $44 billion, wrapping up the year with $158.1 billion in total. Although the company made a net income of $1.3 billion between October and December, it failed to prevent an annual net loss of $2 billion. In 2021, the brand made $10 billion in net income. In the 2023 market, the automaker expects to earn $9 billion to $11 billion before taxes and interest.

The brand has rarely encountered a loss in its long history, which makes 2022 a concerning outlier. The company places the blame on operational challenges, with CEO Jim Farley promising “…we’re going to correct that with improved execution and performance.” While every automaker and dealer found last year challenging, Ford’s questionable investments into businesses such as electric vehicle manufacturer Rivian and self-driving startup Argo.ai likely contributed further to its decline. In spite of the disappointment, the company seems confident it can reverse the damage thanks to the 2023 market.

“I’m excited about 2023, which is pivotal for us,” added Farley. “We’ve got clarity and ambition with the Ford+ plan, a strong team carrying it out, and a lineup of great products and customer experiences that’s getting even better.” Ford+ refers to the company’s business strategy, which it revealed last summer, geared towards scaling its EV production and technology development in preparation for the future.

Given the brand’s long history, one or even ten years straight of losses is unlikely to cripple Ford. However, its failure to succeed in 2022 demonstrates the volatility of the 2022 market. Whether the 2023 market will follow suit remains to be seen.

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