Ford has reported improved performance in China for the last quarter and the whole year of 2019, regardless market headwinds.
According to Ford’s 4th quarter 2019 and full-year financial results published this week, the adjusted Q4 revenues before interest and taxes (EBIT) were 485 million dollars, dropping 67 percent, with improved results in China and Europe more than offset by a drop in North America.
For the full year of 2019, Ford’s adjusted revenues were 6.4 billion dollars, with an EBIT margin of 4.1 percent.
“Financially, the company’s 2019 performance was short of our original expectations, mainly because our operational execution — which we usually do very well– wasn’t nearly good enough. We recognize, take accountability for and have made changes because of this,” stated Jim Hackett, Ford’s CEO.
However, Ford’s Q4 operating loss in China was 61 percent less compared to the same period of previous year, due to lower structural costs.
Ford said that this was the fourth straight quarter of year-on-year improvement in China, which had a 2 percent share in 2019 in the country.
Although the Chinese auto market has experienced drop in the auto market, Ford’s revenues have increased significantly due to newer models it introduced recently, including the Ford Escape SUV and Lincoln Aviator SUV.
But Ford added that it is too early to make estimates about implications of the coronavirus outbreak on its business in China.
Ford has already vowed to release over 30 new vehicles tailored to Chinese consumers in the three years starting from 2019, in order to make a quick turnaround in the country.
As part of “Ford China 2.0” strategy, Ford is installing four centers in China, focused on innovation, design, products and new energy vehicles.
“China is leading the world with smart vehicles, and is a key part of Ford’s global vision for the future. We are excited about seeing more products developed in China, for China and from China,” Jim Hackett said in 2019.
