Tag: profits

By on May 17, 2017

Mark-Fields (Image: Ford)

A day after media reports described an impending mass layoff of Ford Motor Company employees, the automaker has clarified who gets to keep a job.

While the scale of the job reductions is less than previously reported — a 10-percent global workforce reduction is off the table — Ford does plan to cull its salaried North American and Asian workforce by one-tenth in a bid to cut costs.

The move comes after last week’s tense shareholders meeting during which investors and analysts grilled CEO Mark Fields over the company’s sinking market valuation. Since taking the helm three years ago, Fields has seen the company’s stock price sink by roughly 40 percent. Hourly workers aren’t affected by the plan, though the same can’t be said for white-collar employees. (Read More…)

By on May 16, 2017

Ford badge emblem logo

The Ford Motor Company is allegedly preparing for a sweeping reduction of its global workforce. Harder days for the auto industry have been a long time coming, but reports claim the impending layoffs are specifically related to shoring up finances and turning around the company’s lagging stock valuation — meaning Ford could be the canary in the coal mine or a lone company desperate to bolster its own profitability and get angry shareholders off its back.

While the automaker has not yet confirmed the cuts, there is every indication an announcement will be made soon. When confronted with the matter, representatives have been careful to make noncommittal statements and doubly cautious not to deny anything.

“We remain focused on the three strategic priorities that will create value and drive profitable growth, which include fortifying the profit pillars in our core business, transforming traditionally underperforming areas of our core business and investing aggressively, but prudently, in emerging opportunities,” Ford said in an official statement. “Reducing costs and becoming as lean and efficient as possible also remain part of that work. We have not announced any new people efficiency actions, nor do we comment on speculation.”  (Read More…)

By on May 10, 2017

toyota camry

Even as it develops efficient new platforms and streamlines its operation where it can, Toyota finds itself against the ropes as a falling yen and rising costs sends profits tumbling. Its end-of-fiscal-year financial statements, released today, are enough to send bean counters to the medicine cabinet in search of antacid, while the company’s president warns of more trouble ahead.

To Akio Toyoda, the increasingly gloomy picture has all the hallmarks of a failing sports team. (Read More…)

By on May 10, 2017

Ford badge emblem logo

The board of directors at Ford Motor Company will be seeking answers from CEO Mark Fields on how the brand’s mobility strategy played a role in its lackluster annual earnings report. Inside sources claim board members made extra time leading up to Thursday’s annual shareholders meeting to discuss the company’s future with the CEO.

Fields has promoted Ford’s evolution into a mobility company ever since taking the helm in 2014 — something investors haven’t been particularly receptive of. During Fields’ tenure as CEO, shares in the company have fallen by 35 percent. However, with tech-focused companies typically receiving above-average valuations, the methodology behind his strategy appears sound. Ford has spent billions on the development of autonomous technology and showcased mobility concepts that even Tesla hasn’t bothered with.

While many seem too impractical or far-fetched to deserve serious attention, the capital behind its self-driving efforts have kept Ford near the front of the pack in the autonomous race. So, what’s the problem?  (Read More…)

By on May 4, 2017

812-superfast

Thanks to the increasing wealth of the world’s elite, supercars have remained in fashion. Ferrari profits surged upward in the first quarter of 2017 as the Italian automaker continued a scheme designed to gradually accelerate volume.

The brand’s net income over the first three months of 2017 climbed to 124 million euros ($135 million) from 78 million euros during same period last year. Meanwhile, overall revenue increased 22 percent to €821 million, helped largely by engine sales to Fiat Chrysler’s Maserati — the car you buy when you wanted a Ferrari, but fell just shy of being able to afford one. (Read More…)

By on April 28, 2017

2017 Ford F-150 Lariat - Image: Ford

What a difference a few (hundred thousand) recalls make. In a sales market best described as stagnant, a widespread vehicle glitch can dog an automaker’s balance sheet. That seems to be the case at Ford Motor Company, which saw its first-quarter profit fall 35 percent on a combination of factors — not the least of which was a pair of recalls of engine fires and faulty door latches.

Elsewhere in the domestic market, General Motors rode to the financial finish line with a record post-bankruptcy net income while Fiat Chrysler Automobiles climbed further into the black. (Read More…)

By on March 20, 2017

Macan Porsche

While still exclusive, Porsche is gradually becoming a more populous and profitable brand. It delivered 238,000 vehicles last year and posted an operating profit of $4.1 billion — a 14-percent increase over 2015’s accounting.

A little back-of-the-envelope math places the per-car profit at roughly $17,250. As a premium automaker, you’d expect it to rake it in on every vehicle sold. However, Porsche doesn’t limit production to the same extent that Ferrari does in order to maintain artificially high prices. And it absolutely decimates other premium brands that offer exclusivity at a higher volume. BMW and Mercedes-Benz both hover at around $5,000 in profit per car.

Porsche seems to have struck an ideal balance. While its per-car profit was actually higher a few years ago — $23,000 in 2013 — it wasn’t making quite as much money overall. At the time, Bentley pulled in roughly 21 grand per unit and sold fewer vehicles overall. Since then, Porsche has shifted some of its focus downmarket, introduced the Macan, expanded its volume, increased income, and still managed to maintain a sweet profit margin on every vehicle sold.

How did it manage that? Basically, the same way Ford wrangles its F-150.

(Read More…)

By on October 31, 2016

2015 Ford Mustang Flat Rock production

General Motors and the Ford Motor Company both saw U.S. sales declines in the third quarter, but GM was the only one achieving earnings that widely beat expectations. Still, which company is playing the game better is up for debate.

This could turn out to be an Ant and the Grasshopper situation if there is another economic downturn on the horizon. The ant-like Ford could be more ready for an economic winter, while the improvident Grasshopper Motors is left out in the cold with acres of unsellable vehicles — forced to eat its own legs for sustenance.

Of course, if there isn’t an economic downturn, Ford is going to look like a lame duck next to GM’s golden goose.

(Read More…)

By on October 5, 2016

2017 Toyota Highlander

Interbrand released its annual list of the world’s top 100 brands, a ranking that now contains an independent automaker.

While Toyota climbs one spot to the No. 5 position (the highest of all automakers), Tesla has muscled its way onto the field, slotting at No. 100. Volkswagen continues the brand value descent it began last year, falling from No. 35 to No. 40 and posting a value decline of 9 percent.

There’s grim news for GM, as none of its brands made the list this year.
(Read More…)

By on July 21, 2016

General Motors #AMERICA

General Motors is busy phoning friends and posting on its Facebook wall after it made record net revenue in the second quarter of 2016 and boosted its net profit by 157 percent.

A net revenue of $42.4 billion is a high point for the company, even though the automaker’s global sales were flat compared to this time last year, with 2.4 million vehicles sold. Is it any wonder GM isn’t concerned about its falling market share? (Read More…)

By on April 28, 2016

2016 Ford F-150 Limited

News from Dearborn this morning will please recent purchasers of F-150s, Transits, and Fiestas — Ford Motor Company is absolutely on fire financially, earning $2.5 billion in a very large first quarter.

Ford’s pre-tax profit of $3.8 billion was a record for the company. (Read More…)

By on April 22, 2016

General Motors Renaissance Center

There’s happy faces inside the Renaissance Center today.

General Motors saw its first-quarter pretax profit rise 28 percent, despite continuing trouble in foreign markets, Automotive News has reported.

A net income of $1.95 billion means investors will reap $32.66 a share, a 1.5 percent increase. Revenue was up four percent in the first quarter, at $37.27 billion. (Read More…)

By on January 26, 2016

Jeep-Renegade-19

On Wednesday, Fiat Chrysler Automobiles CEO Sergio Marchionne will update investors on his long-term plans and fourth-quarter profits — namely, how many Jeeps it sold — during his scheduled earnings conference call.

It’s widely expected that Sergio will address the near-certainty that Jeep will build a pickup based on the Wrangler, as well as the future for the Jeep Compass that’ll likely survive from the Patriot/Compass twin billing, and Jeep’s potential to keep afloat fledgling FCA brands such as Maserati and Alfa Romeo.

Analysts say FCA’s ambitious target of $5 billion profit by 2018 would be almost unattainable at this point.

“‘Ambitious’ is not really an adequate word to describe it, ‘fantasyland’ might be more appropriate,” Bernstein’s Max Warburton told Automotive News.

(Read More…)

By on January 6, 2016

AutoNation CEO Mike Jackson

The CEO of the largest car dealer in the U.S. told Reuters on Wednesday that automakers shouldn’t base incentives on volume, which could jeopardize cutting profits.

“We really have to watch the quality of volume,” AutoNation CEO Mike Jackson told Reuters. “We have to find the right balance between price and volume.”

Jackson said he doesn’t anticipate auto sales to waver far from 2015’s record year, but he does foresee “entering a new chapter” with weaker demand for cars.  (Read More…)

By on August 5, 2015

For the first time in the nameplate’s history, Toyota will offer a Limited version of its mid-size Tacoma — which was the fifth-best selling truck of all trucks last month — and that’s probably a big deal.

The automaker outlined for us the lineup for the new Tacoma, which will hit dealers in September, and the walk up to the Limited trim — which is at the top trim, for now — sounded light at the bottom and heavy at the top. We’re not allowed to discuss pricing yet, so that’ll have to wait.

However, a top-end Limited trim means that Tacoma isn’t immune to the immutable First Law of Pickup Trucks: You can charge whatever you want for these things. And product planners probably have more in store for the Tacoma. (Read More…)

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