Wednesday, April 17, 2019 2:58:28 PM
By Ben Klayman
Reuters April 17, 2019
By Ben Klayman
DETROIT (Reuters) - Ford Motor Co's shift in production at a Michigan plant to trucks from less profitable cars will lead to a more than $1 billion improvement in operating earnings, an official at the No. 2 U.S. automaker said on Wednesday.
The increase in earnings, before interest and taxes, in 2021 compared with 2017 is due to the shift at the Michigan Assembly Plant in Wayne, Michigan, from C-Max hybrids and Focus compact cars to Ranger mid-sized pickup trucks and Bronco SUVs, Ford's Jim Baumbick, vice president of enterprise product line management, said at a Bank of America Merrill Lynch conference in New York.
"The absolute change in profitability is over $1 billion EBIT and we expect over the long, normal cycle, that to continue to improve," he said. "That's just an example of other choices that we're making in the portfolio that are going to unlock additional value."
Ford has been restructuring its operations globally to improve profitability and speed product development.
Ford is making product shifts elsewhere that are similar to those at the Michigan plant. Baumbick declined to provide details but said there were a couple of cases in which Ford was making "major changes in the overall profit contribution" from one vehicle to another.
The Ranger went on sale in January and the Bronco will launch next year.
In 2017, Ford built about 200,000 C-Max and Focus vehicles and will assemble more than 200,000 of the Ranger and Bronco vehicles in 2021, when the latter is at full production, Baumbick said.
Ford invested $850 million in the Detroit-area plant to retool for the pickup and SUV.
Baumbick said Ford will not chase volume over profitability with any launches. "If the better business has a slightly lower volume, then so be it," he said.
As part of Ford's push to speed up product development, Baumbick said a team of employees in 12 weeks developed a vehicle for the "affordable segments" that will go into production before the end of 2022. He declined to provide more detail.
Ford, based in Dearborn, Michigan, gets 150 percent of its operating profit from its strongest products, such as F-150 full-size pickup trucks and Transit vans. The focus is on shifting investments to areas that offer operating profit margins in the high teens on a percentage basis, Baumbick said.
He also said a Ford Mustang-inspired battery electric SUV that Ford plans to introduce next year would be profitable from its launch and build on company strengths, just like the upcoming electric F-150 will do.
(Reporting by Ben Klayman; editing by Steve Orlofsky and Tom Brown)
https://finance.yahoo.com/news/ford-motor-forecasts-1-billion-profit-improvement-michigan-151503918--sector.html
In case I forgot to mention it above, Always Just My Opinion
Recent F News
- Form 4 - Statement of changes in beneficial ownership of securities • Edgar (US Regulatory) • 05/24/2024 09:25:00 PM
- Form 144 - Report of proposed sale of securities • Edgar (US Regulatory) • 05/24/2024 08:40:13 PM
- John Lawler to Highlight Progress of Ford+ Plan During ‘Chat’ at Deutsche Bank 2024 Global Automotive Conference • Business Wire • 05/24/2024 08:30:00 PM
- CalPERS to Oppose Exxon Mobil Directors; Microsoft Unveils Copilot+ PCs with AI Focus, and More News • IH Market News • 05/21/2024 11:18:35 AM
- Lone Star Electrification: City of Dallas Selects Ford Pro to Advance EV Charging Infrastructure • Business Wire • 05/21/2024 11:00:00 AM
- Form 4 - Statement of changes in beneficial ownership of securities • Edgar (US Regulatory) • 05/17/2024 09:24:36 PM
- Form 4 - Statement of changes in beneficial ownership of securities • Edgar (US Regulatory) • 05/17/2024 09:24:21 PM
- Form 4 - Statement of changes in beneficial ownership of securities • Edgar (US Regulatory) • 05/17/2024 09:24:10 PM
- Form 4 - Statement of changes in beneficial ownership of securities • Edgar (US Regulatory) • 05/17/2024 09:23:53 PM
- Form 4 - Statement of changes in beneficial ownership of securities • Edgar (US Regulatory) • 05/17/2024 09:23:31 PM
- Form 4 - Statement of changes in beneficial ownership of securities • Edgar (US Regulatory) • 05/17/2024 09:22:58 PM
- Form 4 - Statement of changes in beneficial ownership of securities • Edgar (US Regulatory) • 05/17/2024 09:22:43 PM
- Form 4 - Statement of changes in beneficial ownership of securities • Edgar (US Regulatory) • 05/17/2024 09:22:19 PM
- Form 4 - Statement of changes in beneficial ownership of securities • Edgar (US Regulatory) • 05/17/2024 09:21:48 PM
- Form 4 - Statement of changes in beneficial ownership of securities • Edgar (US Regulatory) • 05/17/2024 09:21:25 PM
- Form 4 - Statement of changes in beneficial ownership of securities • Edgar (US Regulatory) • 05/17/2024 09:21:05 PM
- Form 4 - Statement of changes in beneficial ownership of securities • Edgar (US Regulatory) • 05/17/2024 09:20:44 PM
- Form 4 - Statement of changes in beneficial ownership of securities • Edgar (US Regulatory) • 05/17/2024 09:20:02 PM
- OpenAI’s Reddit Partnership Boosts Shares by 14%, Microsoft Embraces AMD Chips for AI, and More News • IH Market News • 05/17/2024 11:36:28 AM
- Form 8-K - Current report • Edgar (US Regulatory) • 05/14/2024 08:07:18 PM
- Farley to Discuss Progress of Customer-Focused Ford+ Plan At May 30 Bernstein Annual Strategic Decisions Conference • Business Wire • 05/13/2024 08:05:00 PM
- Arm Sets 2025 Target for AI Chip Development, Amazon and Microsoft Commit Billions to French Investments, and More • IH Market News • 05/13/2024 11:16:03 AM
- Form 8-K - Current report • Edgar (US Regulatory) • 05/10/2024 12:04:31 PM
- Novavax Surges 57% Post $1.4 Billion Sanofi Deal; Apple Boosts Data Centers with AI and Internal Chips, and More News • IH Market News • 05/10/2024 12:02:56 PM
- Ford Names Lawler Vice Chair With Expanded Ford+ Role; House Joins as Finance VP, to Transition Into CFO Role • Business Wire • 05/10/2024 12:00:00 PM
Avant Technologies Engages Wired4Tech to Evaluate the Performance of Next Generation AI Server Technology • AVAI • May 23, 2024 8:00 AM
Branded Legacy, Inc. Unveils Collaboration with Celebrity Tattoo Artist Kat Tat for New Tattoo Aftercare Product • BLEG • May 22, 2024 8:30 AM
"Defo's Morning Briefing" Set to Debut for "GreenliteTV" • GRNL • May 21, 2024 2:28 PM
North Bay Resources Announces 50/50 JV at Fran Gold Project, British Columbia; Initiates NI 43-101 Resources Estimate and Bulk Sample • NBRI • May 21, 2024 9:07 AM
Greenlite Ventures Inks Deal to Acquire No Limit Technology • GRNL • May 17, 2024 3:00 PM
Music Licensing, Inc. (OTC: SONG) Subsidiary Pro Music Rights Secures Final Judgment of $114,081.30 USD, Demonstrating Strength of Licensing Agreements • SONGD • May 17, 2024 11:00 AM