This morning it was announced that Ford posted a decline in fourth quarter profits last year, contributing to a drop in overall sales by 56 percent in 2014. According to reports, Ford earned $52 million during the fourth quarter, which might not sound too bad. But compared to 2013’s $3 billion fourth quarter, it’s nothing but chump change.
Overall, it doesn’t get any better, either. In total, Ford’s annual net income level fell by over $4 billion last year, from a robust $7.2 to a weakened $3.2 billion.
Issuing a statement, Ford CEO Mark Fields commented on the announcement, saying, “2014 was a solid yet challenging year for Ford — with our investments and a record number of new products launched around the world positioning us for strong growth this year and beyond. The entire Ford team remains focused on our three priorities of accelerating our One Ford plan, delivering product excellence and driving innovation in every part of the business.”
Last year, Ford made a complete overhaul of their lineup, offering variants on some of their most classic vehicles– including the F-150 (switch to aluminum) and the Mustang (available in a right hand drive, European version).
All of their vehicles have pulled in rave reviews, though, and earlier this month, Ford dominated the very important Detroit Auto Show with a trio of dynamite showcases. That, along with a promising upswing in sales recently, is why everyone inside of Ford is staying calm.
Ford CFO Bob Shanks says, “I think we’ll do much better than that in 2015. We do expect to see a substantial increase in our wholesales this year. You’re going to see a pretty big step up … and our share improve as well. You’re going to see a lot of strong growth numbers from Ford in 2015.”
In regards to the new aluminum F-150, Shanks also added, “Vehicles are literally flying off the lots. Mix is extremely rich. Pricing is very, very healthy.”