CLICK TO SHARE
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.
Post a comment.
Anonymous comments are welcome, just check the "Comment Anonymously" box before submitting your comment. Note: Comments are free and open until someone ruins it. Don't dox, promote violence, etc. Be nice and have fun.
CLICK TO SHARE