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Ford earnings take a dive on investment, slowing sales; workers get $6,900 in profit sharing

Ford Motor Company's pre-tax profits for 2014 took a beating, falling to $6.3 billion, a $2.3-billion drop from 2013, while overall revenues fell from $139.4 billion to $135.8 billion. Net income for 2014, meanwhile, plunged 56 percent, from $7.18 billion to $3.19 billion. Yeah, those aren't great numbers. While Ford's figures are largely down across the board, some of the weaker numbers aren't too difficult to explain away. The company launched 24 vehicles across the globe in 2014, including some of its biggest and most important volume models, like the 2015 F-150, as well as iconic offerings like the new Mustang. The result of this is both increased investment as well as a drop in total sales – US market numbers were down 164,000 units compared to 2013. Recall claims and high warranty costs also did a number on the Blue Oval. "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," Ford CEO Mark Fields said in a statement. Ford's 50,180 UAW workers in the United States will receive profit-sharing checks of $6,900. In some markets, Ford's fortunes were impacted by outside factors. Europe, for example, recorded more sales (up 70,000 units) and higher revenues (up $2.2 billion), but still reported a $443-million pre-tax loss. Blame was placed on the crumbling Russian economy, which has suffered from sanctions and slumping oil prices. Despite its troubles last year, the company still seems bullish on 2015. Ford's pre-tax outlook remains unchanged, as the company expects to make anywhere from $8.5 to $9.5 billion on the back of higher revenue from the company's automotive operations. We expect strong growth and improved financial performance in 2015 driven by our investments in new products and capacity," Ford CFO Bob Shanks said of the company's future.

Ford starting up 2.0L EcoBoost engine production in Ohio

Joe Hinrichs, Ford's President of The Americas (pictured above), announced today that in late 2014, the automaker will be building the 2.0-liter EcoBoost four-cylinder at its Cleveland Engine Plant, a move requiring a $200-million investment and the hiring of 450 new employees. European-built Ford products will continue to source this engine from the Valencia, Spain plant where all of these EcoBoost four-cylinder engines are currently built, and the new Cleveland engines will be used for all North American-made models.
Ford is planning to build its popular EcoBoost engines regionally to maximize production capacity and meet customer demand. Last year, Ford sold 334,364 vehicles with EcoBoost engines in the US alone, and that number is expected to swell to more than 500,000 by the end of this year, with global sales expected to total 1.6 million. By 2015, Ford says that 95 percent of its nameplates will offer an EcoBoost engine.
One such vehicle that could be adding an EcoBoost engine, according to Automotive News, is none other than the 2015 Ford Mustang. The report says that Ford could use either the 2.0-liter EcoBoost or an upcoming 2.3-liter EcoBoost in the sixth-generation pony car.

Ford to add more than 2,000 jobs in Kansas City

Continued high demand for the Ford F-150, along with the addition of the all-new Transit series of commercial vehicles, has led Ford to announce that it will add over 2,000 jobs at its Kansas City Assembly Plant. At the time of the announcement, the plant boasts 2,450 hourly employees working on two shifts. All told, Ford will invest $1.1 billion in the Kansas City plant to expand truck production and begin producing the Transit series.
According to the automaker, fullsize truck sales are up 19 percent through April of 2013, leading to an additional 900 workers and a third shift of production for the F-150. Production of the Transit series will begin in the fourth quarter of this year, requiring an additional 1,100 workers. In addition, Ford estimates that a total of 18,000 jobs will be created by suppliers to its Kansas City plant to support the additional vehicle production.
Want to know more? Scroll down for the complete press release.