There’s a lot of money in cars.
Well, there’s a lot of money in selling cars. Just look at Ford’s latest net income figures. The manufacturer made a not-so-modest US$17.9 billion over 2021.
In Kiwi dollars, it’s a touch under $27 billion. Could probably buy a solid two-bedroom house in Auckland for that.
For Ford, the hefty profit has lots of significance. The most important is that they actually made money this time. Last year, the Blue Oval recorded a US$1.3 billion loss.
Unsurprisingly, most of Ford’s earnings came from its North American market. But the company also made progress in certain international regions, including Australasia.
The brand has asserted itself as the prince of EVs in its homeland. Only Tesla sells more all-electric vehicles than Ford each year in the states.
But Ford is continuing to push for electrification. By the end of the decade, they expect 40 per cent of their portfolio to run solely off of batteries.
Yet despite all that was earned over the year, it looks as though investors were anticipating even better results. Ford’s stocks dipped a tad after the announcement.
A shortage of computer chips increased the price of old and new Fords late last year. It’s a problem the company expects to carry over into the first quarter of this year.
Still, Ford projects an even better 2022. They forecast an increase of earnings by as much as 25 per cent in some regions.
And because we all love the Ford vs General Motors rivalry, it looks as if last year was a win for Ford. GM reported a slightly lighter $10 billion profit from the previous year, a significant 55 per cent increase from 2020.