Tags: ford | driverless | cars | autos

Ford: Driverless Car Spending to Hit 2017 Profit

Image: Ford: Driverless Car Spending to Hit 2017 Profit

(AP Images)

Thursday, 15 Sep 2016 10:05 AM

Ford Motor said its pre-tax profit would decline for a second straight year in 2017 as the company invests heavily in electrified and driverless cars.

But the company said earnings would improve again in 2018 on plans to achieve $3 billion in annual savings to help offset design and regulatory costs.

The company estimates that 2016 results will be $10.2 billion, 5.5 percent lower than last year's record 10.8 billion.

The news comes a week after the company announced an expanded $640 million recall to replace faulty door latches on an additional 1.5 million cars.

Ford did not give a precise figure for how much more profits could fall in 2017.

"The decline in 2017 is the result of increasing investments and costs for emerging opportunities," the company said in a statement.

The company plans to invest $4.5 billion in developing 13 electrified cars, representing 40 percent of its lineup, for release by 2020, with a high-volume, fully autonomous car available for ride-sharing by the following year.

Ford reported a 5 percent drop in monthly sales for August and said in July that a cooling US auto boom could affect 2016 profits.

 

© AFP 2017

 
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Ford Motor said its pre-tax profit would decline for a second straight year in 2017 as the company invests heavily in electrified and driverless cars.
ford, driverless, cars, autos
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2016-05-15
Thursday, 15 Sep 2016 10:05 AM
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