Following a year of significant financial pressure, Ford Motor Company disclosed a 2023 net profit of 4,329 million dollars after a loss of 2,152 million dollars in the previous year. Revenues climbed by 11 percent to 176,191 million dollars, signaling a stronger overall performance across the group as the traditional internal combustion engine segment maintained steady earnings even as the industry accelerates toward electrification. Adjusted earnings before interest and taxes (EBIT) reached 10,416 million dollars, matching the prior year and underscoring a robust core business despite sector-wide shifts toward electric propulsion.
Ford Blue, the arm responsible for producing and selling internal combustion engine vehicles, increased its revenue to 101.9 billion dollars, an 8 percent rise driven by a 3 percent uptick in unit sales. The segment earned 7.462 billion dollars with a 7.3 percent margin. In parallel, Ford Pro, which provides services to commercial customers and operates a fleet of commercial vehicles, posted a 19 percent revenue increase to 58.1 billion dollars. Sales revenue for Ford Pro reached 7.222 billion dollars, delivering a 12.4 percent margin.
Ford Model E, the group’s electric vehicle division, reported stronger sales and revenue as demand expanded. The EV unit achieved 20 percent revenue growth and a 12 percent rise in overall sales, nearing a 5.9 billion dollar revenue milestone. However, the division recorded a negative net income of 4,701 million dollars in 2023, reflecting deliberate investments in EV development and manufacturing capacity. Ford’s president and chief executive, Jim Farley, emphasized that the primary measure is how many EVs are sold and that profitability will emerge with scale and time. He noted that adoption varies by geography, influencing outcomes and timing across markets.
Farley also highlighted the growing role of hybrid vehicles within Ford’s broader strategy. He indicated that hybrids will become increasingly important as a bridge in the transition away from traditional internal combustion engines toward full electrification, pointing to margins in some hybrid segments that rival those of gasoline-powered cars. He expressed confidence in an eventual profitable path for the EV initiative and described a favorable long-term outlook for electric mobility.
During the teleconference, Farley reaffirmed the company’s emphasis on cost reductions within the electric vehicle stack. He called for the electrical industry to operate efficiently on its own and stressed the need for sustained profitability to stay competitive against Chinese rivals and competitors like Tesla. Ford’s financial team echoed this stance, stressing disciplined investment and rapid cost management as essential to maintaining momentum in a market that rewards efficiency and scale.
Ford’s chief financial officer, John Lawler, described the EV investment as a smart long-term bet. He framed the company as a continuing pioneer in pickup trucks, sport utilities, and electric commercial vehicles, underscoring that customer insights will drive the next generation of EVs capable of delivering solid returns within a year of launch. The leadership team underscored strategic investments in technology, supplier partnerships, and manufacturing modernization as keys to unlocking higher profitability as the EV ecosystem matures.
In the final quarter, the company faced notable macro headwinds, including a six-week strike by the United Auto Workers. Despite these challenges, Ford reported a net loss of 526 million dollars for the quarter, with revenue rising 4 percent to 46 billion dollars. Accounting expenses tied to changes in retirement and benefit plans contributed to the quarterly figures, while Ford projected 2024 revenue in the range of 10 to 12 billion dollars as part of its ongoing planning for the ensuing year. To deliver shareholder value, Ford announced a regular dividend of 15 cents per share and an additional quarterly dividend of 18 cents per share. Lawler reinforced the objective of boosting the adjusted return on invested capital from 14 percent in 2023 to around 20 percent over the next two years, signaling a disciplined approach to capital allocation while pursuing profitable growth.