EV Market StrategyScaling back plans for its US$3.5bn Michigan battery plant as well as US$12bn in EV investments on the back of disappointing EV demand and higher labour costs, which puts Ford’s long term growth story in question.
Financial PerformanceMost notably, Ford is turning more negative for its Model E segment (EVs), with steeper-than-expected EBIT loss guidance at -US$5bn to -US$5.5bn, an increase of almost 15% from FY23A’s losses of -US$4.7bn.
Labor RelationsUAW serves strike notice at Ford’s largest truck plant where the company’s most profitable vehicles are assembled; a work stoppage at the Kentucky Truck plant will reduce weekly production by approximately 9,000 units, resulting in a significant EBIT loss.