Ford Pulls Full-Year Forecast Due to Union Contract
Reports expanded pullback of EV production in third-quarter report.

Ford said many North American consumers resist paying more for EVs than gas-powered models or hybrids, 'sharply compressing EV prices and profitability.'
IMAGE: Ford
Ford in its third-quarter report Thursday withdrew full-year earnings guidance due to its pending new contract with the United Auto Workers, while also reporting more deceleration of its electric-vehicle business.
The automaker said wholesale deliveries of its first-generation EVs rose 44% in the quarter and that revenue increased 26%. But the unit's earnings before interest and taxes sustained a $1.3 billion loss, more than in the second quarter, which it attributed to investment in new EV models and “challenging market dynamics.”
Ford said many North American consumers resist paying more for EVs than gas-powered models or hybrids, “sharply compressing EV prices and profitability."
“Ford is able to balance production of gas, hybrid and electric vehicles to match the speed of EV adoption in a way that others can’t,” said CFO John Lawler in a press release. “That’s obviously good for customers, who get the products they want – and good for us, too, because disciplined capital allocation and not chasing scale at all costs maximizes profitability and cash flow.”
U.S. EV market leader Tesla has sacrificed revenue for volume this year with a series of price cuts, and Ford and others followed with their own EV price cuts.
Overall, Ford’s quarterly revenue rose 11% year-over-year to $44 billion. Its adjusted EBIT totaled $2.2 billion and so far this year is at $9.4 billion; it earlier forecast up to $12 billion for the full year but withdrew that due to the impact of the pending union contract, which includes 25% worker pay raises.
Originally posted on Auto Dealer Today
More Industry

Pennsylvania Dealership Under New Retailers
The sale of the Chrysler Dodge Jeep Ram store puts a family auto group on a leaner path as first-time dealers take the helm.
Read More →
Battery Storage Takes Priority Over EVs
U.S. automakers are prioritizing battery energy stationary storage over electric-vehicle production as the consumer demand for EVs lags the rest of the world.
Read More →
Auto Dealers Feel Better But Not Great
A second-quarter Cox Automotive poll of franchised retailers and independents found better views of the current market after a good spring but anticipation of third-quarter storminess.
Read More →
New-Vehicle Sales Picture Relative
A May forecast is complicated by last spring’s trade tariff effects on auto retail. Despite continued hard realities, many consumers took advantage of ways to bite the bullet.
Read More →
Auto Group Acquires Third Nissan Rooftop
Iowa-based Coleman Automotive Group recently acquired its seventh dealership, McGrath Nissan, which it renamed Nissan of Elgin.
Read More →
April Less Affordable
Based on prices, reduced incentives and slower household income growth, consumers found it more challenging to buy new last month, Cox Automotive reported.
Read More →
Building an Extraordinary F&I Agency
Work to determine your specialized talent, because that fact will determine everything about your agency’s future.
Read More →
Recipe for Compliance
The secret to both amazing barbecue and compliance is the same: understanding the basics and committing to a process.
Read More →
EVs Getting More Attractive
A growing percentage of U.S. consumers are open to switching and fewer are adverse to the idea, according to a recently completed survey. That’s despite the end of a tax break.
Read More →
EV Sales Drop in April Following Surge
North American electric-vehicle sales were down 28% year-over-year, a sharp contrast from global EV sales growth of 6%.
Read More →