Ford posts strong Q4 results, vows to invest $29 billion on electric and self-driving cars

Ford made $1.3 billion in the fourth quarter of 2020, excluding special items, more than twice the $499 million made in the last quarter of 2019, as it vows to invest $29 billion in electric and autonomous vehicles.

But with special items, it posted a net loss of $2.8 billion in the quarter, compared to a net loss of $1.7 billion a year earlier.

Among the special items were those emanating from permanently shutting its Brazil manufacturing operations and recalling 3 million airbags, and some pension accounting.

For 2020, Ford suffered a $1.3 billion net loss, plummeting from a $47 million profit in 2019.

Excluding items, income for the full year was $1.6 billion, down two-thirds from 2019. Revenue for the year dropped 18 percent to $127 billion, with the number of vehicles it sold down 22 percent.

Most of that sales decline came in the first half of 2020 when its factories were shut down for the pandemic and job losses and layoffs crushed demand for new vehicles.

Ford vehicle sales fell 9% in the fourth quarter.

The company said its 2021 earnings would be better than current forecasts, with a $900 million gain expected on its investment in the electric truck maker, Rivian.

Ford CEO Jim Farley noted that one out of 10 vehicles sold in Europe in December were pure electric and that EV sales in China and the US continue to grow.

Nonetheless, Ford also acknowledged that two gasoline-powered vehicles, the Bronco SUV and the F-150 pickup, will be key to 2021 profits.

Ford, along with other automakers, is facing a computer chip shortage that led to temporary factory shutdowns.