Ford profits hit by tariffs as US car maker records losses in every region except North America
Ford, the second biggest car maker in the US, recorded losses in every global region except North America in 2018, according to its full-year results.
The company, which is in the midst of a major global restructuring drive, is to implement cost-reduction plans and job losses in Europe, looking to shake up its South American business and turn around China. All regions were unprofitable last year for the firm.
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“It was not a year we were happy with and the fourth quarter continued that theme,” chief financial officer Bob Shanks told reporters at the company’s headquarters outside Detroit.
The company took a $3.3bn (£2.53bn) hit in 2019 from punishing global trade tariffs, poor exchange rates and recalls relating to airbag manufacturer Takata.
Ford posted a fourth-quarter loss of $116m, down from a net profit of $2.5bn, in the same period last year, largely because of one-time pension costs and other charges.
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In North America, Ford made a pre-tax profit of $2bn, but faced losses in every other region. Asia took the biggest hit of $381m, caused by plummeting sales in China.
Chief executive Jim Hackett said: “We have consistently laid the foundation for the global redesign of our business, clearly investing to sharpen our competitiveness so we can better serve customers and invest for the future.”
Last week, Ford confirmed plans to work together with German car maker Volkswagen to develop its electric and autonomous cars offering.