Ford (Part 2): Enhancement of CVs and EVs in EU, Lincoln models and SUVs in China
Rise in volume & profits expected in '22 with introduction of EVs and improved semiconductor supply
|Ford’s EV models to be released in Europe by 2024
(The Mustang Mach-E and Transit have already been launched.) (Source: Ford)
In Europe, Ford enhances its commercial vehicle business and accelerates the introduction of EVs with the announcement of its new electrification plan. The automaker aims to make 100% of its passenger vehicles EVs and two-thirds of its commercial vehicles EVs and PHEVs by 2030. It plans to launch three new electric passenger vehicles and four new electric commercial vehicles by 2024. Two of the electric passenger vehicles will use VW’s platform. In addition, Ford and a Korean battery manufacturer SK Innovation Co., Ltd. (SK Innovation) will establish a joint venture in Turkey to produce batteries for EVs.
Ford enjoys strong sales of Lincoln brand vehicles and SUV models in China. In 2021, sales of Lincoln vehicles in China exceeded those in the U.S. for the first time. According to its new model launch plan, Ford will introduce the Equator Sport compact SUV and F-150 Raptor, the off-road version of the pickup truck, under the Ford brand in 2022. In March 2022, the Lincoln brand launched the Z (Zephyr), a mid-size sedan exclusively for China.
In South America, Ford has been restructuring its plants manufacturing footprint. The company closed its two plants and ceased manufacturing engines in Brazil. In India, production of current models at its two plants and building engines at one plant are being discontinued. Ford is considering the possibility to use one of the two closed plants to produce EVs for export.
According to Ford’s financial results for 2021 released in February 2022, its revenue increased by 7.2% year-over-year (y/y) to USD 136.3 billion, and adjusted EBIT (earnings before interest and taxes) rose around four-fold to USD 10 billion, resulting in net income of USD 17.9 billion. Ford’s North American operations and its financial services arm (Ford Motor Credit Company LLC) e division supported profits, and the valuation gain on Ford’s investment in EV manufacturer Rivian Automotive, Inc. (Rivian) contributed to good financial results. Ford expects full-year 2022 wholesale volumes to be up about 10-15% y/y owing to an improved supply of semiconductors and adjusted EBIT to increase by 15-25% y/y to USD 11.5-12.5 billion.
This report is the second part of two reports on Ford. Part 1, already posted, provided an overview of Ford’s business strategy, North American operations, and electrification plan. Part 2 focuses on Ford’s operations in Europe, China, South America, and Indian markets, as well as its financial results for 2021, including LMC Automotive’s forecast on Ford’s global sales.
Ford (Part 1): Focusing on EVs and Commercial Vehicles under the "Ford+" Business Strategy （Mar. 2022）
U.S. battery electric vehicle strategies for GM, Ford and Stellantis （Dec. 2021）
Motor Bella 2021: OEMs expand EV model lineup in response to market demand （Nov. 2021）
Motor Bella 2021: U.S. demand for SUVs and light trucks steadily grows （Oct. 2021）
IAA Mobility 2021: VW and Ford reveal concepts and electric cars focusing on performance （Oct. 20211）
U.S. Fuel Economy Regulations Tightened: MY 2026 CO2 171 g/mile, CAFE 52.0 mpg （Sep. 2021）
Auto Shanghai 2021: NEVs of Non-Chinese OEMs (2) （Jun. 2021）
WCX 2021: Development of automotive connectivity and autonomy （May 2021）
Ford (Part 1): Collaboration with VW and targeted investment under new CEO （Nov. 2020）
Ford (Part 2): Rationalization and Aggressive Product Enhancement in Europe and China （Nov. 2020）
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